Cryptocurrency exchange Binance.US has tried to quell possible unrest by its users following a motion by the United States securities regulator seeking to freeze its assets "on an accelerated basis."
In a June 6 tweet, Binance.US reiterated that “user assets remain safe and secure” adding that the platform “continues to be fully operational with deposits and withdrawals running as normal.”
Previously, on June 6, the SEC filed an emergency motion in the US District Court for the District of Columbia seeking a temporary restraining order against Binance, Binance.US, and Binance CEO Changpeng Zhao (CZ), seeking eight shares.
This afternoon, the SEC filed a motion seeking a TRO and a preliminary injunction against https://t.co/AZwoBOgsqS trying, among other things, to freeze https://t.co/AZwoBOgsqS corporate assets. User assets remain safe and secure and the platform continues to be fully...
—Binance.US (@BinanceUS) June 6, 2023
The requested actions include the freezing of Binance.US assets and the repatriation of fiat and cryptocurrency held by US clients or for the benefit of US clients. Additionally, the motion prohibits defendants from destroy, alter or hide records and impose other sets of conditions on discovery.
Some in the crypto community shared concerns that the restraining order could lead to a "bank run" on the exchange.
The SEC's emergency motion is not expected to directly affect customers' ability to withdraw, and will still require approval by a district judge to go forward.
Binance.US called the injunction “unwarranted,” claiming it was filed as part of a ploy to gain litigation advantage after the exchange spent last week in dialogue with the SEC. Binance.US stated:
"The filing of the preliminary injunction is unwarranted and is based more on SEC staff gaining an advantage in litigation versus genuine concern for the security of client assets."
"Despite the information the company has provided to assure SEC staff of the safety of client assets, the staff has decided to file the motion seeking a temporary restraining order and preliminary injunction," it said. Binance.US, adding:
"While we are disappointed by this action, we look forward to defending ourselves in court."
Cointelegraph reached out to Binance.US for further comment but did not immediately receive a response.
Related: SEC Files Motion for Restraining Order Against Binance
The order arrives the same day. Coinbase was sued by the SEC for allegedly offering unregistered securities.
The SEC's complaint alleges that Coinbase has never registered as a broker, national exchange, or clearing agency, evading the disclosure scheme for securities exchanges, and has been operating as an unregistered securities broker since 2019. The lawsuit has similarities to the one filed against Binance on June 5.
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