Binance.US claims SEC’s restraining order would halt their business.
Binance.US, the U.S. affiliate of the global cryptocurrency exchange, has described the Securities and Exchange Commission’s (SEC) attempt to freeze its funds as a “draconian and unduly burdensome” move. The SEC alleges that Binance, Binance.US and Changpeng “CZ” Zhao operated as an unregistered securities exchange, broker and clearinghouse, and allowed U.S. customers to buy and trade cryptocurrencies that the regulator claimed were unregistered securities. The SEC also claimed that Binance and Zhao were able to access Binance.US customers’ funds, moving millions to entities like Merit Peak and Sigma Chain – two companies owned by Zhao. Binance.US has denied the allegations and argued that the SEC’s proposed remedies would effectively end its business. The U.S. District Court for the District of D.C. will hold a hearing on the matter on Tuesday, June 13 at 2:00 p.m. ET.