Mathieu
# SEC Seeks to Freeze Binance Assets: Safeguarding Customer Assets
The Securities and Exchange Commission (SEC) is taking action to freeze the assets of Binance, the world’s largest cryptocurrency exchange. The SEC filed an emergency motion for a temporary restraining order on Tuesday, stating that this decision was made to ensure the safety of customer assets.
According to the filing, Binance has been engaged in “violative conduct” for years, showing disregard for United States laws, evading regulatory oversight, and raising concerns about financial transfers and the custody of customer assets.
To enforce the order, Binance and its CEO Changpeng “CZ” Zhao are required to relinquish possession, custody, or control over customer assets within five days. Both Zhao and the company are prohibited from transferring or withdrawing assets from customer wallets. Additionally, the SEC requests that Binance transfer customers’ assets to new wallets with new private keys, including administrative keys, and provide a record of all new wallets with customer assets.
However, the proposed order allows ordinary customers to redeem their assets, with the exception of Customer Crypto Assets belonging to any of the Binance Entities. These assets cannot be transferred for the benefit of Binance Entities.
In response to the motion, Zhao retweeted a post saying, “We are about to find out how solvent #Binance is.” This suggests that he is prepared to face and address any concerns regarding Binance’s financial stability.
Moish Peltz, a representative from the law firm Falcon, Rappaport & Berkman, commented on the SEC’s actions, describing them as “extremely aggressive.” He further explains that granting this motion could significantly impact the operations of the parties involved.
The SEC’s move to freeze Binance’s assets is aimed at ensuring the security of customer assets during the resolution of this dispute. This bold approach emphasizes the importance of regulatory oversight and adherence to the laws governing cryptocurrency exchanges.
Sources:
– [SEC filing](https://storage.courtlistener.com/recap/gov.uscourts.dcd.256060/gov.uscourts.dcd.256060.4.0_1.pdf)
– [Proposed order](https://storage.courtlistener.com/recap/gov.uscourts.dcd.256060/gov.uscourts.dcd.256060.4.1.pdf)
– [Moish Peltz’s comment](https://twitter.com/LadyofCrypto1/status/1666181976213053443)
