- Last week the SEC moved to freeze Binance.US assets.
- Binance.US lawyers have responded to the SEC’s filing.
- According to the firm’s attorneys, the request would crash Binance.US’ business.
Last week, the United States Securities and Exchange Commission took its crypto enforcement efforts into high gear with a lawsuit against Binance, the world’s largest crypto exchange.
The commission notably did not end its efforts against Binance there, as it also moved to freeze Binance.US assets immediately after, seeking a temporary restraining order from the court. In a recent court filing, Binance.US lawyers have vehemently opposed the SEC’s request.
SEC Request Would “Effectively End” Binance.US’ Business
In a court filing dated Monday, June 12, attorneys slammed the SEC’s request for a temporary restraining order on assets belonging to BAM Trading (Binance.US) and BAM Management (Binance.US’ managing entity) as “unreasonable.”
Contending that the commission’s request was unnecessary, attorneys claimed that the firm had made significant efforts to reach a compromise with the SEC regarding its restraining order application in line with court directives on June 7.
Further, they argued that the agency’s request would have catastrophic effects on the crypto exchange’s business and ability to defend itself.
"The requested relief would primarily harm BAM's customers, effectively put BAM out of business. and prevent BAM from defending itself in this litigation," Binance.US attorneys asserted, alleging that it would no longer be able to facilitate payments for employees and other service providers.
The firm’s lawyers suggested that these effects are already visible, citing a recent decision by a Binance.US banking partner to cease providing settlement services for the firm. As previously reported by DailyCoin, this has forced the exchange to switch to a crypto-only model.
The court is set to hold a hearing on the temporary restraining order request on Tuesday, June 13.
On the Flipside
- The SEC contends that the restraining order prevents Binance from accessing U.S. customer deposits and would theoretically allow for the exchange to continue to process withdrawals.
Why This Matters
If successful, the SEC’s request to freeze Binance.US could have untold effects on the crypto exchange’s business and customers.
Read this to learn more about the SEC’s move to freeze Binance.US assets:
A former SEC enforcement chief has warned that Binance will likely face charges from the U.S. Department of Justice. Find out why: