SEC’s Asset Freeze Could End Binance: Customers’ Funds at Risk

• The US arm of the world’s largest crypto exchange, Binance, is facing a lawsuit from the SEC that could potentially end its business.
• Binance argues that if the court grants the SEC’s motion to freeze its assets, it will no longer be able to fund any operations or defend itself in court.
• Binance asserts that customer assets are secure and accessible at any time and questions why such drastic measures are necessary.

SEC’s Attempt to Freeze Assets Could Put Binance Out of Business

The United States arm of the world’s largest crypto exchange by trading volume, Binance, has warned that a recent lawsuit filed by the U.S. Securities and Exchange Commission (SEC) could effectively put it out of business. According to new court documents, if the SEC were to be successful in freezing all of Binance’s assets, it would not be able to fund any operations or defend itself in this litigation.

Customer Assets Secure but Court Ruling Could Harm Users

Binance insists that customer assets are secure and available for withdrawal at any time, but warns that a court ruling granting an asset freeze could still harm customers as banking partners may cease honoring requests for transfer funds for redemption purposes.

SEC Seeks Unnecessary Relief: Binance

The firm also claims that the relief sought by the SEC is unnecessary and unjustified as they have not identified any instance where customer funds were mishandled or misused. Furthermore they argue against labeling their request as an “emergency”.

BAM Seeks Carefully Calibrated Relief

BAM is asking for carefully calibrated relief instead which does not affect their ability to operate or defend themselves in court while protecting customer assets from harm.

Court Will Decide Fate of Crypto Exchange

Ultimately it will be up to a judge to decide whether or not to grant the SEC’s motion on June 21st – a decision which could ultimately determine whether or not BAM stays in business.