The Securities and Exchange Commission (SEC) and the US affiliate of the Binance exchange will face each other in Columbia District Court this Tuesday, June 13. The hearing will discuss whether the exchange’s funds should be frozen, as requested by regulators a week ago.
Special SEC seeks to freeze assets currently held in Binance.US operating company accounts. In this case, BAM Management US Holdings and BAM Trading Services, as CriptoNoticias reported last week.
A day later, the agency went to the district court To sue Binance and its CEO Changpeng Zhao for “violating” the law Federal Securities Authorities. The SEC accuses the exchange of a number of financial crimes.
Today, just before the court date, a number of Binance lawyers made the allegations of exchange.
In their document, they indicate that the court must deny the SEC’s motion and instead order the proposal put forward by the defendants. You say something elsewould primarily harm BAM’s customers, it would put that company out of business and prevent it from defending itself in this lawsuit.”
The attorneys also state that BAM cannot comply with the payment of salaries and professional services while any assets of this company, Zhao or any related company are prohibited.
The Binance legal team considers the request for an order to freeze its funds a “draconian and inappropriate” action by the SEC.
Until now, the agency had stated that it acted “in the interests of the clients”, and to prevent the defendants from “destroying, altering or hiding records relevant” to the trial.
However, Binance’s lawyers claim so The SEC does not present sufficient evidence that this could happen. Rather, their petition “merely addresses concerns that assets may be transferred outside of the United States because defendants BAM Holding and Zhao are located outside of the country,” they add.
“There is no need for the draconian relief requested by the SEC as BAM strongly shares the SEC’s desire to protect client assets when those BAM client assets are safe,” adds the Binance legal team.