In a bid to address concerns among its users, leading cryptocurrency exchange Binance.US has taken to social media to emphasize that customer assets are secure despite a recent motion filed by the United States Securities and Exchange Commission (SEC).
The regulatory body sought to freeze the exchange’s assets on an expedited basis, raising fears among some members of the crypto community.
In a tweet on June 6, Binance.US reassured its users that their assets remain safe and secure. The exchange further stated that its platform continues to operate smoothly, with deposits and withdrawals functioning normally.
This announcement aimed to quell anxieties and prevent a potential “bank run” on the exchange.
The SEC filed an emergency motion in the District of Columbia U.S. District Court on the same day, seeking a temporary restraining order against Binance, Binance.US, and Binance CEO Changpeng Zhao (CZ).
The motion put forth eight actions, including the freezing of Binance.US assets and the repatriation of fiat and cryptocurrency held by U.S. customers. It also prohibited the defendants from tampering with records and imposed additional conditions on the discovery process.
Despite the SEC’s motion, Binance.US reassured its customers that their ability to withdraw funds would not be immediately affected. The motion requires approval from a district judge to proceed. Binance.US expressed disappointment over the SEC’s action but conveyed their readiness to defend themselves in court.
Interestingly, after this legal development against Binance, the SEC filed a lawsuit against Coinbase on the same day allegedly that the popular exchange offered unregistered securities. The lawsuit accuses Coinbase of operating as an unregistered security broker since 2019, evading the necessary disclosures for securities markets.
Also Read: SEC’s Move: 61 Crypto Tokens Now Classified as Securities
As the regulatory landscape continues to evolve in the cryptocurrency space, both Binance.US and Coinbase find themselves navigating legal challenges.
