On June 5, the U.S. Securities Exchange Commission (SEC) filed charges against Binance and its related companies. The SEC then sought a restraining order against Binance.US to freeze the company’s assets and force the return of user funds.
Objection to the SEC’s Order
However, lawyers representing Binance and related firms have submitted a court filing on June 12, expressing opposition to the SEC’s request for a restraining order. The lawyers argued that the SEC has not demonstrated any purpose for the requested relief. They also said that the SEC’s concerns have already begun to cause harm, which is the opposite of what the SEC is supposed to protect against.
According to the lawyers, banking partners of Binance.US’s parent company, BAM Trading, have threatened to prevent the firm from accessing corporate and customer assets. They also warned that the restraining order would “primarily harm BAM’s customers and effectively end BAM’s business” and damage its ability to defend itself in court.
No Risk to Customer Assets
The lawyers added that there is no risk to BAM’s customer assets, and the SEC has created an emergency that does not exist. They also said that BAM Trading has agreed not to transfer assets to Binance Holdings Limited, Binance CEO Changpeng Zhao, or other related parties.
Furthermore, the lawyers noted that the requested restraining order is not related to specific alleged violations and that the U.S. lacks jurisdiction over Zhao, Binance Holdings Limited, and related parties.
Impact on Binance.US
Binance.US previously announced its plan to halt U.S. dollar transfers and transition to a cryptocurrency-only exchange model on June 13 due to its failing banking relationships. The lawyers argued that the SEC’s restraining order would have a detrimental impact on the company’s ability to operate and defend itself in court.
Binance and related firms have objected to the SEC’s request for a restraining order, arguing that it would primarily harm their customers and effectively end their business. The lawyers also stated that there is no risk to customer assets and that the SEC has created an emergency that does not exist.