SEC files restraining order petition against Binance

The SEC has accused Binance of mismanaging funds and operating an unregistered stock exchange.

The United States Securities and Exchange Commission (SEC) has filed an emergency petition in the United States District Court for the District of Columbia for a temporary restraining order against Binance, Binance.US and CEO Changpeng Zhao (CZ) on June 6, asking for eight shares.

Actions requested include freezing Binance.US assets and repatriating fiat and cryptocurrencies held by or for the benefit of US clients. In addition, the motion prohibits defendants from destroying, altering or concealing documents and imposes other sets of conditions on discovery.

According to folder:

"This relief is necessary on an expedited basis to ensure the safety of clients' assets and prevent the dissipation of assets available for judgment, given defendants' years of violent conduct, failure to comply with state laws, States, regulatory oversight evasion and open questions about various financial transfers and the custody and control of client assets."

The request was accompanied by a proposed order, ready to be signed by the judge.

It is proposed to transfer assets belonging to US clients to Binance.US within 10 days, and defendants must transfer all client crypto assets to new wallets with new private keys, which will be in the possession of agents of BAM Trading and employees located in the United States. Customer assets would still be refundable, although transfers over $100,000 will require special handling.

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