The Securities and Exchange Commission (SEC) of the United States has submitted another document in its legal case against Binance.US, expressing concerns about the safety of investors’ funds. The filing, made on June 5, alleges that the defendants, which include Binance CEO Changpeng “CZ” Zhao, BAM Management, BAM Trading, and Binance, have profited billions of dollars while putting investors’ assets at significant risk.
According to the filing, the defendants purposefully attempted to circumvent U.S. regulatory oversight while offering securities-related services to American users.
It provides an example of customer funds from both Binance and Binance.US being mixed together in an account controlled by a company associated with Zhao, specifically identified as Merit Peak Limited. The funds were then allegedly transferred to a third party in connection with the buying and selling of cryptocurrencies.
The regulators argue that this arrangement has given Zhao unrestricted control over billions of dollars in assets deposited on the Binance.US platform, without proper oversight or security measures.
Despite the SEC’s attempts to freeze assets, Binance.US has assured users that their funds on the platform remain secure. On June 6, the U.S. regulators filed a motion for a restraining order against Binance, citing mishandling of user funds and the operation of unregistered securities. The freezing of assets was among the requested actions mentioned in the motion.
In the SEC’s legal actions against Binance and Coinbase, it has classified at least 67 different cryptocurrencies as securities. This classification potentially affects over $100 billion worth of tokens in the market.
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