Crypto exchange Binance US has urged a federal judge to reject a request by the U.S. securities regulator to freeze its assets. The company won’t be able to maintain the trading platform or pay employees and vendors, defense attorneys said in a court filing.
Asset Freeze to Halt Binance US Operations, Exchange Says, Seeks Rejection of SEC Request
Binance US, the American subsidiary of the largest cryptocurrency exchange, Binance, has asked a federal judge to reject a request filed by the U.S. Securities and Exchange Commission (SEC) to freeze billions of dollars’ worth of assets under its management.
Last week, the SEC sought court approval to freeze crypto assets on the platform for the duration of a legal fight against Binance.US, Binance Holdings Ltd. and Binance founder and CEO Changpeng Zhao, citing concerns over the safety of customer funds
One of the banking partners of Binance US has already informed the crypto platform it will no longer hold its assets starting on June 14, the filing further reveals. This partner also froze all activity on the company’s account until after the court rules on the SEC’s motion, the report notes.
On Thursday, Binance US informed customers that it’s suspending dollar deposits and withdrawals. The exchange asked users to withdraw their holdings in U.S. currency by June 13 as it transitions into a crypto-only trading platform.
