BREAKING: Court Gives Binance Users Terrifying News—Time To Move Your Funds?

By Vince • June 7, 2023 9:40 am • Comments

While this is not financial advice, perhaps now is the time to move your assets off of Binance.

ProCoin News recently reported that the SEC filed a lawsuit against Binance alleging that the exchange was an unlicensed securities broker among other things.

Several coins and tokens were also labeled by the SEC as securities.

Trending: Ripple Spells Out Penalty Terms To SEC

On Tuesday, the SEC filed a motion to freeze assets on the Binance.US exchange, and, according to page 4 of that filing, the request has been granted.

Binance.US attempted to reassure customers by stating:

This afternoon, the SEC filed a motion seeking a TRO and preliminary injunction against http://Binance.US attempting to, amongst other things, freeze http://Binance.US corporate assets.

User assets remain safe and secure and the platform continues to be fully operational with deposits and withdrawals functioning as normal.

The filing of the preliminary injunction is unwarranted and based more on the SEC Staff obtaining an advantage in litigation versus genuine concern about the safety of customer assets.

Until recently – despite years of engagement – the SEC Staff has not expressed a concern about the safety of customer assets. And through near around-the-clock dialogue over the past week, company’s counsel addressed SEC Staff’s concerns regarding the safety of customer assets.

Despite the information the company has provided to ensure SEC Staff of the safety of customer assets, the Staff has nonetheless decided to file the motion seeking a temporary restraining order and preliminary injunction.

While we are disappointed by this action, we look forward to defending ourselves in court.

 

Daily Coin confirmed:

The order effectively freezes the assets of BAM Management and BAM Trading, preventing the firms from sending out Binance.US customer funds except to custodians like BitGo or Aegis.

In addition, it forces the repatriation of any assets held on behalf of Binance.US customers.

The court notably supported the SEC’s arguments that such an order was necessary to prevent the movement of funds outside its jurisdiction.

Adam Cochran writes:

“To really spell it out for people the Binance freeze order is expressly asking the courts to freeze funds FROM cz. In other words, they believe he had been accessing and using user funds, and were concerned that he would do so again. We’ve not seen something like this before.”

 

One user known as Willy Woo claimed that these recent developments are not phasing Binance.US clients and customers, who have not yet shifted Bitcoin away from the exchange.

According to Coin Journal:

If the court order is granted, Binance US will be forced to send back customers’ fiat and cryptocurrencies.

The move signals SEC’s commitment to taking more drastic actions against Binance and its founder, Changpeng Zhao (CZ).

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