The U.S. Securities and Exchange Commission (SEC) has filed a motion requesting a restraining order against Binance.US on June 6. The SEC’s request specifically asks the court to freeze the assets of Binance.US’s parent companies, which are collectively operating under the name BAM. The regulator’s motion also seeks to have Binance.US funds returned to customers alongside other relief, citing the defendants’ violation and disregard of U.S. laws.
SEC Seeks Preliminary Injunction and Information Disclosure
The SEC has also asked Binance, Binance.US-related companies, and Binance CEO Changpeng Zhao to show why a preliminary injunction should not be entered. This means that the regulator wants restrictions imposed before the trial. The SEC aims to have the defendants compelled to provide certain information and prevented from destroying, concealing, or altering records.
Customer Safety Concerns Prompt SEC Action
The securities regulator said that these actions are needed rapidly to ensure customer safety. It noted that many questions remain open about intercompany transactions and said that some defendants claim they are not under the court’s jurisdiction. The SEC originally filed charges against Binance.US and related parties on June 5.
Zhao Reassures Public on Order’s Scope
Binance CEO Changpeng Zhao has attempted to reassure the public by noting that the order will only affect Binance.US — not Binance.com — if the request is granted. The SEC’s request for a restraining order follows a series of regulatory actions against cryptocurrency exchanges in recent months.