Binance.US has responded in court to the commission’s allegations of fraud, market manipulation, and misleading customers about the location and safety of their assets, a week after the U.S. Securities and Exchange Commission (SEC) filed a civil action against the company.
We listed this development among the critical events of the new day in the news we prepared as Bitcoinsistemi.com.
Binance.US Lawyers Deny SEC’s Claims
Lawyers representing Binance.US’ parent company, BAM Trading, said the SEC’s request to freeze assets on the Binance US platform would “de facto terminate BAM’s activities,” describing it as “brutal.”
Binance.US’s response on Monday was the platform’s initial response to allegations that the SEC directed more than $12 billion in client assets to itself and its parent company, diverting funds controlled by owner and founder Changpeng ‘CZ’ Zhao.
Binance lawyers also note that following the SEC filing, one of its banking partners informed Binance US that it will no longer serve the company and will freeze all its assets pending a temporary restraining order decision.
In addition, there was an interesting detail in the documents. According to the documents, cryptocurrency exchange Binance US received the Wells Notice sent by the SEC on February 3, the same day as Paxos.
Binance US said it has made “significant efforts” to cooperate with the SEC investigation since 2020.
Responding to allegations that the SEC was mixing client assets with funds controlled by Zhao, lawyers representing Binance.US’ parent company BAM Trading replied that they “hold their clients’ fiat currencies in separate accounts held with banking partners, separate from all institutional funds.”
The company acknowledged that Zhao was the owner of BAM Trading’s bank account, but claimed he had no signing authority on the account.
A session is scheduled for tomorrow at 6 PM UTC to address the SEC’s request to freeze the assets of Binance US.
*Not investment advice.
