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Binance.US has asked the court to reject the securities regulator’s proposed temporary restraining order against its assets, claiming that the move would “effectively end” its business.
In a June 12 filing, Binance.US criticized the Securities and Exchange Commission’s emergency motion for a temporary restraining order on its business, calling it “cruel and unduly burdensome.”
A hearing on the provisional restraining order is scheduled for June 13 in the US District Court for the District of Columbia.
SEC/Binance Newsflash: Binance is Fighting Back
Binance, CZ, and Defendants BAM recently filed a lengthy opposition petition to the SEC’s emergency action. Find links to two important defenses below, which will give you a good overview of theirs.
Should be awesome… pic.twitter.com/qc5GRwHmjn
— John Reed Stark (@JohnReedStark) June 12, 2023
Binance.US maintains that the restraining order will force the closure of BAM Trading Services Inc., the entity that provides crypto trading and exchange services to Binance.US, stating:
“The requested disturbance would primarily harm BAM’s customers, effectively put BAM out of business, and prevent BAM from defending itself in this litigation.”
Notably, Binance.US took aim at the regulator’s entire approach to legal action against it, stating that “all SEC claims fail” because regulators have not “identified a single security trade on the BAM platform.” At the time of publication, the SEC has alleged that at least 68 cryptocurrencies are securities.
“The SEC points out that it is certain that cryptocurrencies are security, but that is not the case. Many cryptocurrency exchanges, including BAM, have operated in the United States for years without SEC interference denying claims that they are expressly covered by securities laws,” write archive.
Additionally, Binance.US said it had made “significant efforts” to cooperate with the ongoing SEC investigation that began on December 20, 2020. According to the filing, the results of this investigation have resulted in more than 700,000 individual and “bespoke” communications. “. data” in its day-to-day operations.
Today we billed Binance Holdings Ltd. (Binance); US-based affiliate BAM Trading Services Inc., which, together with Binance, operates https://t.co/swcxioZKVP; and its founder, Changpeng Zhao, with various securities law violations.https://t.co/H1wgGgR5ir pic.twitter.com/IWTb7Et86H
— U.S. Securities and Exchange Commission (@SECGov) June 5, 2023
The SEC first launched major legal action against Binance and its affiliates on June 5, accusing the crypto exchange of failing to register as a securities exchange and for allowing US customers to trade cryptocurrencies it claims to be securities.
Additionally, regulators alleged that Binance CEO Changpeng Zhao (CZ) had access to Binance.US customer funds and alleged that he moved $12 billion of Binance funds through a privately controlled entity called Merit Peak.
The following day on June 6, the SEC filed an emergency motion for a temporary restraining order against Binance, requesting that assets held on Binance.US be frozen until the crypto exchange can prove that the funds cannot be transferred by CZ or any other party. another executive at Binance.
Related: Binance CEO CZ responded as data showed billions in exchange outflows
While Binance and Binance.US have repeatedly disputed the SEC’s claims on social media over the past week, the joint memorandum filed alongside the filing marks the first official comments made regarding the allegations.
It said the SEC was unable to “identify a single instance where BAM’s customer assets were mishandled or misappropriated.”
“Indeed, there is no ’emergency’ here at all, other than those produced by the SEC for its own purposes,” the memorandum added.
Magazine: Crypto Regulation: Does SEC Chairman Gary Gensler have the final say?
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