Binance.US says user funds ‘remain safe’ amid SEC attempt to freeze assets

The U.S.-based exchange said it’s “fully operational” and called the SEC’s motion “unwarranted.”

Crypto exchange Binance.US responded to the new motion from the United States securities regulator seeking to freeze the assets of the U.S. crypto exchange “on an expedited basis.”

In a Twitter post on June 6, Binance.US reiterated that “user assets remain safe and secure” and added the platform “continues to be fully operational with deposits and withdrawals functioning as normal.”

On June 6, the SEC filed an emergency motion in the District of Columbia U.S. District Court for a temporary restraining order against Binance, Binance.US and Binance CEO Changpeng Zhao (CZ) requesting eight actions.

This afternoon, the SEC filed a motion seeking a TRO and preliminary injunction against https://t.co/AZwoBOgsqS attempting to, amongst other things, freeze https://t.co/AZwoBOgsqS corporate assets. User assets remain safe and secure and the platform continues to be fully…

— Binance.US (@BinanceUS) June 6, 2023

The requested actions include the freezing of the assets of Binance.US and the repatriation of fiat and cryptocurrency held by U.S. customers or for the benefit of U.S. customers. In addition, the motion prohibits the defendants from destroying, altering or concealing records and imposes other sets of conditions on discovery.

Binance.US said the injunction was “unwarranted” and claimed it’s part of a ploy to gain an advantage in litigation, despite having been in dialogue with the SEC over the past week, stating:

“The filing of the preliminary injunction is unwarranted and based more on the SEC Staff obtaining an advantage in litigation versus genuine concern about the safety of customer assets.”

“Despite the information the company has provided to ensure SEC Staff of the safety of customer assets, the Staff has nonetheless decided to file the motion seeking a temporary restraining order and preliminary injunction,” Binance.US said, adding:

“While we are disappointed by this action, we look forward to defending ourselves in court.”

Cointelegraph contacted Binance.US for further comment but did not receive an immediate response.

This is a developing story, and further information will be added as it becomes available.