Binance’s $2.2 billion in U.S. client assets are at “substantial risk” of being stolen by founder Zhao Changpeng unless a freeze order is issued, federal regulators said in a filing Tuesday night. Stated. and the Exchange Commission.
SEC attorneys previously filed an emergency motion, citing the following reasons: Risk of capital flight It is asking judges to repatriate and freeze U.S. customer assets to prevent illegal transfers by Zhao or Binance entities. The SEC on Monday filed charges against Binance and Zhao, accusing them of engaging in the offering and sale of unregistered securities and mixing investor funds with their own.
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In the latest filing, Mr. Zhao is described as “a foreigner who openly expresses his opinion that he is not under the jurisdiction of this court.” SEC Lawyers Allege Two Binance U.S. Subsidiaries, BAM Trading and BAM Management, Are Controlled by Zhao and Already Earn At Least $420.4 Million in ‘Illegal Profits’ in Profits and Venture Funding bottom.
Years of correspondence between the SEC and Binance, which claims it has no formal headquarters, suggests Binance.US failed to articulate who was in control of client assets, according to filings. It is said that
The SEC claimed that “Zhao and Binance have had billions of dollars worth of client assets under their free reign.”
According to the SEC, Mr. Cho’s lawyers have denied control and beneficial ownership of U.S. companies and bank accounts where Mr. Cho transferred billions of dollars to a holding company based in Switzerland and the British Virgin Islands. , said the billionaire is not subject to U.S. law.
The SEC states that federal law and case law have established court jurisdiction over Zhao and Binance.
“There is no doubt that the court has personal jurisdiction over all defendants,” the SEC said.
Binance’s U.S. unit has said it retains control over most of the company’s technology and financial infrastructure, but the SEC says unless immediate action is taken, Mr. Cho’s ultimate control will be held by investors. They claim they are putting their assets at risk.
“Zhao and Binance’s blatant desire to avoid U.S. regulation and surveillance, their covert control over BAM trading, and their history of mixing and moving BAM trading assets through a network of entities controlled by Zhao outside the U.S. “There is no guarantee that BAM Trading employees are not currently affected by Zhao or Binance,” the filing states.
Federal regulators have also asked the court to allow Cho’s attorneys to serve him by email, citing Cho’s “geographically elusive patterns” as making it difficult to pinpoint his exact residence and whereabouts. I am asking you to Mr. Cho is reportedly a UAE resident.
Binance did not respond to a request for comment.
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