Binance, its US affiliates and CEO
Changpeng Zhao have slammed a recent claim made by the US Securities and
Exchange Commission (SEC) that they commingled or diverted assets belonging to
customers of Binance.US, a local affiliated platform in the country. The parties on Wednesday (today) filed a motion before the district court in Columbia, asking that
the court order the SEC “to comply with all applicable rules of conduct concerning
extrajudicial statements.”
On July 17, the SEC published a statement saying it had secured ‘an
emergency relief’ to protect Binance.US customers’ assets. In
the statement, the securities noted that Binance, Zhao
and operators of Binance.US, BAM Management US Holdings and BAM Trading Services, have agreed
to repatriate to the United States assets held for the benefit of customers of the local unit in the country.
“Given that Changpeng
Zhao and Binance have control of the platforms’ customers’ assets and have been
able to commingle customer assets or divert customer assets as they please, as
we have alleged, these prohibitions are essential to protecting investor
assets,” Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, said
in the statement.
However, Binance, the
US affiliates and Zhao argued in the new motion opposed Grewal’s claim, noting that the SEC had previously admitted
before court that it “has no evidence that BAM customer assets have been
dissipated, commingled, or misused in any way.”They described the
SEC’s press statement as ‘disappointing’,
and further contended that the action poses potential harm to
US
customers and ‘risks tainting the jury pool.”
Binance, its US affiliates and CEO
Changpeng Zhao have slammed a recent claim made by the US Securities and
Exchange Commission (SEC) that they commingled or diverted assets belonging to
customers of Binance.US, a local affiliated platform in the country. The parties on Wednesday (today) filed a motion before the district court in Columbia, asking that
the court order the SEC “to comply with all applicable rules of conduct concerning
extrajudicial statements.”
On July 17, the SEC published a statement saying it had secured ‘an
emergency relief’ to protect Binance.US customers’ assets. In
the…
