Summary
- Last week, the SEC sued Binance for alleged violations of U.S. securities laws.
- The SEC has now requested an emergency freeze of all available Binance assets.
- Binance has argued against the “draconian relief sought by the SEC”.
SEC Requests Asset Freeze
The Securities and Exchange Commission (SEC) has requested an emergency freeze of all available Binance assets, which will be fought by a former agency executive. Last week, the SEC sued Binance for violations of U.S. securities laws and “years of violative conduct” that allegedly put customers’ funds at risk. The request would target the assets of both Binance U.S. and the global exchange, as well as seek to repatriate funds held abroad that have already been frozen by one unnamed banking partner since the court case started.
Binance Argues Against “Draconian Relief”
In response to this asset freeze request, Binance argues that their customers’ funds are safe and that such a freeze would only prevent them from using their funds as they did before in a perfectly legitimate way. Furthermore, they say it would hamper operations and make legal defense much harder – what they call “draconian relief”.
“Draconian Relief”
The phrase “draconian relief” refers to extreme measures taken by governments or organizations in order to enforce compliance with rules and regulations. In this context, it is used to describe how an asset freeze could severely impede upon a company’s operations – while not necessarily addressing any issues related to customer safety or security – thus making it difficult for them to defend themselves against accusations made by regulatory bodies such as the SEC in this case.
“Years Of Violative Conduct” Alleged By The SEC
The SEC is alleging “years of violative conduct”, meaning behavior or activities which violate certain existing laws or regulations, on behalf of Binance which allegedly put customers’ funds at risk due to lack of oversight or appropriate management practices within the company itself. Ultimately though, these allegations remain unproven until further evidence is brought forth in court proceedings between both parties involved in this lawsuit – namely: the Securities and Exchange Commission (SEC), and Binance itself.
“Operations Would Quickly Grind To A Halt”
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If the asset freeze were granted it would drastically affect how long-term operations could continue at current capacity for Binance; with many essential functions being unable to be carried out due to lack of available funding sources within reachable areas (externally or internally). As pointed out by one source close to these matters: “[an asset freeze] would quickly grind [operations] to a halt”.