SEC Seeks Emergency Order to Freeze Binance US Assets

The Securities and Exchange Commission has asked a judge to freeze assets held by Binance.US, according to an emergency motion filed by the agency on Tuesday.

The freeze would impact two holding companies associated with Binance.US’s operations: BAM Management US Holdings and BAM Trading Services. 

The emergency motion also requests the repatriation of assets belonging to Binance.US customers—whether that involves fiat currency or crypto—a process that would involve the transfer of assets back to the United States.

If granted, the two holding companies and Binance CEO Changpeng Zhao would be directed to “show cause” as to why a preliminary injunction should not be entered, according to the motion. It would also prohibit defendants named in the SEC’s lawsuit from destroying, altering, or concealing any records that are relevant.

Additionally, the motion asks for expedited discovery in the lawsuit and alternative means of service, meaning the SEC would not need to serve papers in person like is traditionally required.

The SEC believes the motion is necessary on an expedited basis “to ensure the safety of customer assets and prevent the dissipation of available assets for any judgment,” pointing to Binance’s allegedly illicit behavior.

The filing follows the SEC’s lawsuit against Binance and CEO Changpeng Zhao unveiled on Monday. The agency struck the leading crypto exchange with 13 civil charges, accusing it of commingling customer funds and evading regulators, among other claims.

Binance has claimed the SEC's lawsuit is "misguided" and "unreasonable," and the agency's regulatory posture is undermining America's role as a global financial hub.

Binance did not immediately respond to a request for comment from Decrypt.