Binance has responded to allegations filed by the SEC in the lawsuit.
Binance US continues to deal with the lawsuit filed by the SEC. The company aims to outdo the case by hiring the SEC’s former chief executive officer.
Binance Makes Clarifications About SEC’s Claims
Binance US has responded to the Securities and Exchange Commission (SEC) allegations of fraud, market manipulation and asset protection. The company said it has had significant collaboration with the SEC investigation since 2020. However, the SEC claims that it has not received adequate answers as to where customer assets are stored.
Binance US’s court filing responded to the SEC’s allegations that over $12 billion in client assets under the control of the company and its parent were diverted to funds controlled by owner and founder Changpeng Zhao. The company also denied the SEC’s claims, arguing that they kept customer assets in segregated accounts and kept the fiat currency under the control of their bank partners.
The SEC claims that Zhao checked their bank accounts, proving that there is no distinction between Binance and Binance US. The SEC has also placed a temporary restraining order on Binance US, freezing the company’s assets and demanding a full accounting of Binance and Binance US’s financial standing.
This filing comes in preparation for tomorrow’s hearing and relates to the SEC’s request for a temporary restraining order to Binance US that would effectively freeze its assets outside of client withdrawals. The SEC is requesting more information to ensure the company’s financial condition and the security of client assets.
