SEC Moves To Freeze Binance's US Assets With Temporary Restraining Order

In a significant development, the U.S. Securities and Exchange Commission is moving to freeze the assets of Binance US as part of its lawsuit against the cryptocurrency exchange. 

The SEC filed Tuesday to procure a temporary restraining order against Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings Inc. and Changpeng Zhao.

The order seeks to have the defendants transfer all customer crypto assets to new wallets with unique private keys within 30 days. As per the court filing, "These private keys, and any portion or copy thereof, and any device, hardware, or software holding such private keys or any portion or copy thereof, will be in the sole possession, custody, and control of Defendant BAM Trading officers and employees who are located in the United States."

The proposed temporary restraining order would require court approval to take effect. 

See Also: SEC Lawsuit Against Binance Sends Bitcoin, Ethereum And BNB On A Roller Coaster Ride: Which One Will Prevail?

The SEC is requesting that any transfer of customer assets over $100,000 must receive written approval from BAM Trading's CEO and CFO, assuring compliance with the proposed. Transfers to support customer redemptions would continue, except those involving Binance entities.

The SEC's motion asks for BAM Trading to entrust customer crypto assets from its staking-as-a-service program to BitGO and Aegis, third-party custodians. 

See Also: After Binance, SEC Accuses Coinbase Of 'Acting As Unregistered Broker' In Lawsuit

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