2 years ago
A Securities and Exchange Commission (SEC) Monday effort to frost Binance.US's funds is simply a "draconian and unduly burdensome" move, the U.S. affiliate of the planetary crypto speech argued Monday.
"If the Court does code the merits of the SEC’s motion, it should contradict that motion. The SEC seeks unnecessary and unjustified relief. Far from requesting alleviation that is 'carefully calibrated' to 'maintain[] the presumption quo' ... the SEC’s projected remedies would efficaciously extremity BAM’s business," Binance.US's question argued.
The SEC sued Binance, Binance.US and Changpeng "CZ" Zhao past Monday connected allegations that the companies operated arsenic an unregistered securities exchange, broker and clearinghouse each successful 1 to let U.S. customers to bargain and commercialized definite cryptocurrencies that the regulator claimed were unregistered securities. The SEC besides alleged that Binance (the planetary exchange) and its laminitis Zhao were capable to entree Binance.US's customers' funds, moving millions to entities similar Merit Peak and Sigma Chain – 2 companies owned by Zhao.
The SEC filed for a impermanent restraining bid to frost these funds until Binance.US was capable to beryllium that nary 1 astatine Binance, including bulk proprietor Zhao, could interaction them.
Binance and Binance.US had already denied the claims successful blog posts and tweets past week, but Monday marked a court-ordered deadline for a ceremonial response. The U.S. District Court for the District of D.C. volition besides clasp a proceeding connected the question connected Tuesday, June 13 astatine 2:00 p.m. ET.
In Monday's filing, Binance.US's attorneys wrote that freezing its funds would "primarily harm BAM’s customers, efficaciously enactment BAM retired of business, and forestall BAM from defending itself successful this litigation," arsenic it could nary longer wage its employees, vendors oregon different parties oregon adjacent support its technology.
The frost whitethorn besides spook Binance.US's banks, 1 of which has already announced it would cease doing concern with the firm, the filing said.
Binance, Binance.US and Zhao person added their ineligible counsel to the tribunal docket implicit the past week, including George Canellos, a erstwhile Department of Justice prosecutor and one-time SEC Division of Enforcement co-director.
English (US) 