The US Securities and Exchange Commission (SEC) has taken legal action against the world’s largest crypto exchange, Binance, by requesting a US Federal Court to freeze all of Binance US’s assets. This is to prevent any possible dissipation of assets available for any judgment, following reports that Binance has broken federal securities laws.
The order does not apply to Binance’s two US holding companies which have accounts at various financial institutions, such as Axos Bank and Prime Trust. However, if the court grants the order, Binance US will be forced to return customers’ fiat and cryptocurrencies. The SEC’s action is to show its commitment to taking more drastic actions against Binance’s founder, Changpeng Zhao (CZ).
The move signals the SEC’s commitment to taking more drastic actions against Binance and its founder, Changpeng Zhao (CZ). If the court’s order is granted, Binance US will have to send back customers’ fiat and cryptocurrencies. Sources familiar with the latest development said that the SEC has taken steps to stop any possible dissipation of available assets for any judgment, given the defendants’ years of violation of the laws of the US.
