{"id":1946784,"date":"2023-06-14T09:52:59","date_gmt":"2023-06-14T13:52:59","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/binance-us-says-secs-temporary-restraining-order-would-destroy-the-company\/"},"modified":"2023-06-14T09:56:14","modified_gmt":"2023-06-14T13:56:14","slug":"binance-us-says-secs-temporary-restraining-order-would-destroy-the-company","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/binance-us-says-secs-temporary-restraining-order-would-destroy-the-company\/","title":{"rendered":"Binance.US claims SEC&#8217;s order could ruin the company."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbinance-us-says-secs-temporary-restraining-order-would-destroy-the-company%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1946784&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Binance Fights Back Against SEC\u2019s Attempt to Freeze Assets<\/h2>\n<div class=\"post_content\">\n<div class=\"aplayer_app\" data-source=\"https:\/\/vs1.youmaker.com\/assets\/2023\/0614\/91a24792-4338-4bc3-b1c8-c97923d28d9f\/audio.mp3?length=5298957&#038;duration=442\"><\/div>\n<\/p>\n<div class=\"article-contentstyles__ArticleSectionWrapper-sc-1lrs40v-1 wLgAS\">\n<div id=\"at-content-section-0\" class=\"at-content-section\">\n<div class=\"contentstyle__StyledWrapper-g5cdrh-0 ipXuoZ composer-content\">\n<div class=\"common-textstyles__StyledWrapper-sc-18pd49k-0 eSbCkN\">\n<div class=\"typography__StyledTypography-owin6q-0 bYmaON at-text\">\n<blockquote>\n<p>&#8220;The SEC seeks unnecessary and unjustified relief. Far from requesting relief that is \u2018carefully calibrated\u2019 to \u2018maintain[] the status quo\u2019 \u2026 the SEC\u2019s proposed remedies would effectively end BAM\u2019s business.&#8221;<\/p>\n<\/blockquote>\n<p>Binance said that the Securities and Exchange Commission\u2019s (SEC) move to freeze the assets of its American affiliate, Binance.US, would effectively destroy the crypto exchange.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>The SEC filed a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/breaking-georgia-update-judge-issues-restraining-order-for-10-days-preventing-defendants-from-destroying-or-erasing-dominion-voting-machines\/\" title=\"BREAKING GEORGIA UPDATE: Judge Issues Restraining Order for 10 Days Preventing Defendants from Destroying or Erasing Dominion Voting Machines\">temporary restraining order<\/a> on June 12, to freeze Binance.US\u2019s funds until it was able to prove that no one at the firm, including its CEO, Changpeng \u201cCZ\u201d Zhao, could access them.<\/p>\n<p>Binance and Zhao were hit by the SEC with 13 charges on June 5 for alleged violations of U.S. securities rules, which they have totally denied.<\/p>\n<p>The first hearing for the case was held on June 13 at the U.S. district court for the District of Washington, D.C.<\/p>\n<h3>SEC Presses Ahead to Shut Down Binance<\/h3>\n<p>The federal regulator accused Binance, Binance.US, and Zhao for allegedly running the companies as an <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-crypto-exchange-bittrex-seeks-bankruptcy-after-sec-complaint\/\" title=\"Bittrex, a US crypto exchange, seeks bankruptcy following an SEC complaint.\">unregistered securities exchange<\/a>, broker, and clearinghouse.<\/p>\n<p>The defendants were also accused of allowing American customers to buy and trade certain cryptocurrencies that the SEC recently defined as unregistered securities in a crackdown on private currency.<\/p>\n<p>The SEC said that Binance and its CEO diverted millions from customer accounts held by from Binance.US to entities owned by Zhao, like Bank Merit Peak and Sigma Chain.<\/p>\n<p>SEC chairman Gary Gensler accused the defendants of attempting to evade U.S. securities laws \u201cby announcing sham controls that they disregarded behind the scenes so that they could keep high-value U.S. customers on their platforms.\u201d<\/p>\n<p>\u201cThrough 13 charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law,\u201d Gensler said in a press release.<\/p>\n<p>According to the SEC complaint, Binance and Zhao allegedly \u201csecretly controlled\u201d Binance\u2019s American platform operations, despite publicly stating that it did not serve U.S. investors.<\/p>\n<p>Binance immediately denied the SEC\u2019s allegation that it was a clearing agency or an illicit exchange.<\/p>\n<p>The firm also refuted accusations that it directly operated Binance.US and that it merely acted as a service provider for the platform.<\/p>\n<p>The filing quoted Gensler\u2019s previous admission that there was no regulatory framework for cryptocurrencies before Congress when the charges were filed against Binance in May.<\/p>\n<h3>Binance Requests Limited Control of Assets to Continue Operations<\/h3>\n<div id=\"at-content-section-0\" class=\"at-content-section\">\n<div class=\"contentstyle__StyledWrapper-g5cdrh-0 ipXuoZ composer-content\">\n<div class=\"common-textstyles__StyledWrapper-sc-18pd49k-0 eSbCkN\">\n<div class=\"typography__StyledTypography-owin6q-0 bYmaON at-text\">\n<p>In a motion filed by Binance.US, the company called the SEC\u2019s moves \u201cdraconian and unduly burdensome\u201d and said \u201cif the court does address the merits of the SEC\u2019s motion, it should deny that motion.\u201d<\/p>\n<blockquote>\n<p>&#8220;The SEC suggests that it is a foregone conclusion that cryptocurrency is a security, but that is not the case.&#8221;<\/p>\n<\/blockquote>\n<p>Attorneys for the embattled crypto exchange wrote that freezing its funds would \u201cprimarily harm BAM\u2019s customers, effectively put BAM out of business, and prevent BAM from defending itself in this litigation.\u201d<\/p>\n<p>George Canellos, a former Department of Justice prosecutor for the Southern District of New York, and one-time SEC division of enforcement co-director, was recently added to the legal team.<\/p>\n<p>They said freeze would likely deter banks from doing business with Binance, which is already having <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/binance-us-says-secs-temporary-restraining-order-would-destroy-the-company\/\" title=\"Binance.US claims SEC's order could ruin the company.\">trouble finding financial institutions<\/a> willing to partner with them.<\/p>\n<p>The SEC\u2019s actions would prevent the crypto exchange from paying its employees, vendors, and other parties, or even allow it to maintain its systems, said the filing.<\/p>\n<p>The defendants filed a joint memorandum arguing that \u201cthere is no risk to [Binance.US] customer assets,\u201d and said there was no need for an emergency action.<\/p>\n<p>Binance.US later filed a separate request that would allow the company to continue paying employees and vendors, but prevent it from paying any other entities controlled by Zhao.<\/p>\n<p>Attorneys representing the firm asked the court for permission to allow Binance.US to move all of its assets to BAM Trading\u2019s \u201cpossession, custody, and control.\u201d<\/p>\n<p>This would make sure that its current employees, except for Zhao, would still have access to its accounts, so that no one from the crypto exchange could access its funds during the trial.<\/p>\n<div class=\"common-textstyles__StyledWrapper-sc-18pd49k-0 eSbCkN\">\n<p>Binance.US also promised to transfer all user funds to new digital wallets within two weeks, but the proposal stops far short of the SEC\u2019s demand for a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/russian-forces-attack-kyiv\/\" title=\"Russian Forces Attack Kyiv\">full asset freeze<\/a>.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<h3>Crypto Exchange Said That Regulators Failed to Warn of Violations<\/h3>\n<div class=\"at-rail-wrapper\">\n<div class=\"at-rail-content-wrapper\">\n<div class=\"article-contentstyles__VertWrapper-sc-1lrs40v-3 fXyeCK\">\n<div class=\"display-desktop-block display-tablet-none display-mobile-none\">\n<p class=\"freestart-vertstyles__StyledWrapper-cr8nn3-0 iVHmuo\">The firm said in its filing that the SEC could not identify \u201ca single security trading on BAM\u2019s platform.\u201d<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p class=\"freestart-vertstyles__StyledWrapper-cr8nn3-0 gWUxIC\">Binance is fighting back against the SEC\u2019s attempt to freeze its assets, calling the move \u201cdraconian and unduly burdensome.\u201d The crypto exchange has denied the 13 charges of violating U.S. securities rules and is requesting limited control of its assets to continue operations. Binance.US has promised to transfer all user funds to new digital wallets within two weeks, but the SEC is demanding a full asset freeze.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Binance warns that the SEC&#8217;s decision to freeze Binance.US&#8217;s assets could lead to the destruction of the crypto exchange. The SEC filed a temporary restraining order on June 12, freezing Binance.US&#8217;s funds until the company can prove that no one, including CEO Changpeng &#8220;CZ&#8221; Zhao, can access them.<\/p>\n","protected":false},"author":327,"featured_media":1946785,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[28596,4856,5425,6279,14955],"class_list":["post-1946784","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times","tag-binance-us","tag-claims","tag-company","tag-ruin","tag-secs"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1946784","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/327"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1946784"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1946784\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1946785"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1946784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1946784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1946784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}