Binance.US has asked the court to reject the securities regulator's proposed temporary restraining order against its assets, on the grounds that the move would "effectively terminate" its business.
On a June 12 presentationBinance.US criticized the Securities and Exchange Commission's emergency motion for a temporary restraining order on its business, calling it "draconian and unduly burdensome."
The hearing on the temporary restraining order is scheduled for June 13 in the United States District Court for the District of Columbia.
SEC/Binance Newsflash: Binance Strikes Back
Binance, CZ, and the BAM defendants have just filed lengthy briefs opposing the SEC's emergency action. Find links to two important allegations below, which will give you a good idea of your defenses.
It should be an extraordinary... pic.twitter.com/qc5GRwHmjn
—John Reed Stark (@JohnReedStark) June 12, 2023
Binance.US argued that the restraining order would force the closure of BAM Trading Services Inc., the entity that provides cryptocurrency trading and exchange services for Binance.US, stating:
"The requested relief would primarily harm BAM's customers, put BAM out of business, and prevent BAM from defending itself in this litigation."
In particular, Binance.US took aim at the regulator's entire approach to taking legal action against it, stating that "all of the SEC's assertions fail" because the regulator has yet to "identify a single security trade on the BAM platform." ". At the time of publication, the SEC has alleged than at least 68 cryptocurrencies they are values.
“The SEC suggests that it is a foregone conclusion that cryptocurrency is a security, but that is not the case. That numerous cryptocurrency exchanges, including BAM, have operated in the United States for years without SEC interference belies the claim that are clearly covered by securities laws," the filing wrote.
In addition, Binance.US said that it had made "significant efforts" to cooperate with an ongoing SEC investigation that began on December 20, 2020. According to the filing, the results of this investigation have yielded more than 700,000 individual communications and " to measure". data” about their daily operations.
Today we charge 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 a variety of securities law violations.https://t.co/H1wgGgR5ir pic.twitter.com/IWTb7Et86H
— US Securities and Exchange Commission (@SECGov) June 5, 2023
He The SEC first launched a major legal action against Binance and its affiliates on June 5, accusing the crypto exchange of failing to register as a stock exchange and allowing US clients to trade cryptocurrencies that it claims are securities.
Furthermore, the regulator accused Binance CEO Changpeng Zhao (CZ) of being able to access funds from Binance.US clients and alleged that he moved $12 billion in funds from Binance through a private monitoring entity called Merit Peak.
The next day, 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 could not be moved by CZ or any other executive at Binance.
Related: Binance CEO CZ Responds as Data Points to Billions in Exchange Outflows
While both Binance and Binance.US have repeatedly denied the SEC's claims on social media over the past week, a joint memorandum introduced in conjunction with the filing marked the first official comment made regarding the allegations.
It argued that the SEC cannot "identify a single instance in which BAM's client assets were mishandled or misused."
“In fact, there is no 'emergency' here at all, other than one manufactured by the SEC for its own purposes,” the memo adds.
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