The US Securities and Exchange Commission (SEC) has requested a temporary asset freeze for BinanceUS, the US subsidiary of Binance, the largest exchange in the world. This motion may result in the suspension of trading activity involving Bitcoin (BTC), Shiba Inu (SHIB), and other assets if it is granted by the court.
The SEC accused Binance and its CEO, Changpeng “CZ” Zhao, of violating securities laws, notably by allegedly misrepresenting trading regulations on BinanceUS. This led to the motion.
The preliminary injunction motion and temporary restraining order (TRO) aim to prevent BinanceUS from moving money or assets to Binance, CZ, or any related organization. According to the SEC, such transactions would immediately endanger investors by causing irreparable harm.
BinanceUS Response to SEC Filing
In a tweet response to the motion, BinanceUS emphasized the safety of its client’s assets and the continued smooth operation of the platform. Users have testified to the exchange’s claim that deposit and withdrawal operations are unaffected.
Regarding the SEC’s filing, the exchange expressed its dissatisfaction and thought it unnecessary. The business suspects the agency’s goals may be to obtain a competitive edge in court rather than protect client assets.
Furthermore, BinanceUS emphasized that throughout their interactions with the agency over the years, the US regulator had not raised any issues relating to the security of consumer assets. Recall that in January, Gemini, another American exchange that the SEC had previously sued, said similar things about the watchdog.
According to Binance US, it has recently held lengthy and ongoing conversations with the SEC and taken proactive measures to allay concerns. Despite these efforts, the motion has nevertheless been brought up. The exchange declares that it will represent itself in court.
Effect on Shiba Inu & Other Assets
Users of BinanceUS who trade BTC, Shiba Inu, and other assets may have substantial consequences due to the TRO and preliminary injunction request. If approved, the motion might lead to the platform’s trading activities being permanently suspended, preventing users from accessing their money.
For consumers holding risky crypto assets exposed to price volatility, this could result in large losses. Leaders in the industry have underlined that this action only hurts the investors that the SEC wishes to safeguard. The motion has drawn criticism from the whole crypto community.
CZ stressed that only BinanceUS, which serves US nationals, will be impacted if the motion is granted. Regardless of the outcome of the motion, he guaranteed that customer assets on the worldwide Binance platform would remain secure.