Binance.​US says user funds ‘remain safe’ amid SEC attempt to freeze assets

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Cryptocurrency exchange Binance.US is trying to assuage possible user fears after a petition from US securities regulators to freeze assets “quickly.”

In a June 6th tweet, Binance.US reiterated that “user funds remain safe,” adding that the platform “deposits and withdrawals continue to function perfectly as usual.”

Earlier on June 6, the SEC filed an emergency motion in the United States District Court for the District of Columbia seeking a temporary injunction against Binance, Binance.US, and Binance CEO Champeng Chao (CZ), It requested eight measures.

This afternoon, the SEC filed a motion for a preliminary injunction against TRO. https://t.co/AZwoBOgsqS Among other things, trying to freeze https://t.co/AZwoBOgsqS corporate assets. User assets remain safe and the platform remains fully protected.

— Binance.US (@BinanceUS) June 6, 2023

The requested actions included freezing Binance.US assets and repatriating fiat and cryptocurrencies held by or for the benefit of US customers. In addition, the motion prohibits defendants from destroying, altering, or concealing records and imposes a series of other conditions on discovery.

Some in the Cryptocurrency Community share We are concerned that this restraining order could lead to “mounting runs” on exchanges.

The expedited motion from the SEC is not expected to directly affect a customer’s ability to withdraw funds and will require a district judge’s approval to proceed.

Binance.US claims the injunction was filed as part of a ploy to gain an advantage in litigation after the exchange had spoken to the SEC over the past week, saying the injunction was “unjustified.” Binance.US said:

“The filing of the preliminary injunction is unjustified and based on the SEC staff’s advantage in litigation rather than genuine concern for the safety of client assets.”

“Despite the information provided by the company to assure the SEC staff of the safety of customer assets, the staff nevertheless decided to file motions for temporary and interim injunctions,” Binance.US said. said and added:

“We are disappointed by this action, but look forward to defending ourselves in court.”

Cointelegraph reached out to Binance.US for further comment but did not immediately receive a response.

RELATED: SEC Files Restraining Order Complaint Against Binance

The order came on the same day that Coinbase was sued by the SEC for allegedly providing unregistered securities.

The SEC lawsuit alleges that Coinbase has never registered as a broker, national stock exchange or clearing house, evaded securities market disclosure schemes and has been operating as an unregistered securities broker since 2019. are doing. This lawsuit is similar to the lawsuit filed against Binance. June 5th.