The United States Securities and Exchange Commission (SEC) has filed another document in its lawsuit against Binance.USsaying that investor funds are at risk.
In it presentation Entered on June 5, regulators claim that the defendants, including Binance CEO Changpeng Zhao and Binance Holdings Ltd., "have enriched themselves with billions of US dollars and have put investors' assets at risk." significant".
It goes on to say that the defendants made “deliberate efforts” to circumvent US regulatory oversight while providing securities-related services to US users.
“[This] puts the safety of billions of dollars of US investor capital at risk and is at the mercy of Binance and Zhao."
TO report CNBC reports that the figure cited by the SEC is $2.2 billion.
The filing gives an example of billions of US dollars of client funds from both Binance platforms being "combined" in an account operated by a "Zhao-controlled entity", which he identified as Merit Peak Limited.
He said the funds were then transferred to a third party "ostensibly in connection" with the buying and selling of crypto assets.
Related: SEC's Gensler Claims 'Parallels' Between Binance and FTX, But One Was Not Sued
According to regulators, the deal has given and continues to give Zhao "free rein" over billions in assets held on the Binance.US platform, "without oversight or checks to ensure assets are properly protected."
At the time of writing, Binance.US has said that user funds on the platform "stay safe" amid SEC attempts to freeze assets.
On June 6, US regulators filed a motion for a restraining order against Binance due to mishandling of user funds and trading with unregistered securities. The asset freeze was one of the requested actions included in the motion.
The latest SEC vs. Binance lawsuit, as well as its lawsuit against Coinbase, has resulted in the regulator labeling at least 67 different cryptocurrencies as values. This affects over $100 billion worth of tokens on the market.
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