The American arm of the world’s largest exchange, Binance.US, has hit back at the US Securities and Exchange Commission’s request to freeze its assets pending the lawsuit filed by the regulator for the violation of multiple securities laws.
According to court documents filed at the US District Court for the District of Columbia, Binance.US said that the SEC’s request was “draconian and unduly burdensome” and added that:
The requested relief would primarily harm BAM’s customers, effectively put BAM out of business, and prevent BAM from defending itself in this litigation. Without the ability to pay its employees, vendors, suppliers, and professionals in the ordinary course of business and to maintain its technology platform, operations would quickly grind to a halt and BAM would be unable to even fund its defense to this action.
With a freeze of all corporate assets, banking partners would most likely cease to honor requests to transfer funds for any purpose, including customer redemptions.
Binance.US Customers’ Assets are Safe
The Binance.US further stated that there was no need for the said freeze as customers’ assets were safe.
© Solana Daily Brief, Inc. All Rights Reserved. This article is for informational purposes only. It is not to be used as legal, tax, investment, financial, or other advice.There is no need for the draconian relief sought by the SEC because BAM steadfastly shares the SEC’s desire to protect customer assets. BAM customer assets are secure, appropriately segregated, and available to customers. In fact, the SEC’s motion does not identify a single instance in which BAM customer assets were mishandled or misused. The SEC’s application is also not an “emergency.”