The U.S. Securities and Exchange Commission (SEC) has filed an urgent motion in a federal court in Washington, DC, seeking a freeze on the assets of the U.S. version of crypto exchange Binance and the return of fiat and digital assets to it Land demands ownership from platform customers.
The lockdown order doesn’t apply to the international exchange, only the two holding companies of Binance’s US division — it affects dozens of accounts at Axos Bank, Prime Trust, the defunct Silvergate Bank and other financial institutions. The SEC filed a lawsuit against Binance and CEO Changpeng Zhao, alleging 13 counts of violations of the law, including defrauding investors, illegally pooling investor capital and the platform itself, and operating as an unregistered broker, trader, and clearing house.
The regulator justified the urgency of the application by saying that the trading platform has flouted US laws for years, and Binance management may waste existing assets in an effort to avoid the enforcement of future court decisions. In the risk zone calculated by the SEC, customer assets worth US$ 2.2 billion are held by American investors.
The head of the site, Changpeng Zhao, is listed as in the document “a foreigner who has openly stated that he does not fall within the jurisdiction of this court”and two Binance.US division companies he controls — BAM Trading and BAM Management — received, according to the division “Illegal Profit” of at least $420.4 million. At the same time, funds from American legal entities were systematically transferred to the accounts of companies based in the British Virgin Islands and Switzerland.
US federal authorities are also requesting that Zhao be notified through his attorneys in this regard “geographical volatility” Businessman – it is difficult to determine his exact location, but according to some information, he lives in the United Arab Emirates.