Binance.US stated that they had worked closely with the SEC over the past two years and had made considerable efforts to do so.
Binance.US has just engaged four attorneys from Milbank LLP, together with George Canellos, the co-director of the Securities and Exchange Commission’s enforcement division, to help with its defense after the US SEC made serious accusations last week.
Binance.US is accused of running an unauthorized securities exchange. At Milbank, Canellos presently serves as the group’s worldwide head of litigation and arbitration. In the past, he oversaw more than 1,300 attorneys at the SEC working on various investigations.
As previously stated, three additional lawyers will join Binance.US’s defense team. On June 5, the SEC launched legal action against Binance.US, the international exchange, and its founder, Changpeng Zhao.
They are charged in the case with violating US securities laws by mismanaging customer cash and deceiving investors and regulators. The SEC requested a temporary asset freeze for Binance.US in order to safeguard customers funds. The SEC’s accusations against Binance have been refuted.
Numerous banks indicated their intention to discontinue relations with Binance.US in the wake of the SEC’s move. After that, it made the decision to halt USD deposits.
Binance.US Refutes Charges of Fraud and Manipulation
In a fresh court filing on Monday, Binance.US stated that the exchange had “made significant efforts” to work with the US SEC ever since December 2020.
For the first time, the exchange has refuted the SEC’s allegations that Binance.US and its parent company diverted over $12 billion in customer assets to accounts under the control of the company’s founder and owner, Changpeng “CZ” Zhao.
Zhao was also charged by the US SEC with combining customer assets with money under Zhao’s direct control at Binance. Lawyers for Binance.US parent business, BAM Trading, responded to the claim by stating that the company “maintains its customers’ fiat currency in segregated accounts maintained with its banking partners, separate from any corporate funds.”
Changpeng ‘CZ’ Zhao is the owner of the BAM Trading bank account, according to Binance.US, although he does not hold signatory authority over the account. The SEC contends, however, that Zhao is in charge of those bank accounts, demonstrating a lack of distinction between Binance and Binance.US. Zhao is thought to own a majority share in both companies.
Binance.US has pleaded with the federal judge to deny the US SEC’s request to freeze assets on the cryptocurrency exchange. The exchange company claims that freezing its assets would harm its consumers and ruin its operations.
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