Last Updated on June 7, 2023 by Bitfinsider
The Securities and Exchange Commission followed up on its request from yesterday’s enforcement action by requesting the freezing of assets, including cryptocurrencies, held by Binance, Binance.US, and their proprietor Changpeng ‘CZ’ Zhao.
As part of its initial enforcement action filed on Monday, the SEC has already requested the freezing of Binance, Binance.US, and owner Changpeng ‘CZ’ Zhao’s assets. However, the agency filed a temporary restraining order to expedite the matter further.
The commission requested the asset ban in response to allegations that Zhao and Binance executives diverted customer funds to Zhao’s personal investment funds, which he then used to purchase a $11 million yacht and purchase BUSD.
“The SEC respectfully submits that this relief is necessary on an expedited basis to ensure the safety of customer assets,” the SEC argues in its restraining order filing, as well as to prevent Binance and Zhao from hiding assets, “given the Defendants’ years of violative conduct, disregard for the laws of the United States, evasion of regulatory oversight, and open questions about various financial transfers and the custody and control of Customer Assets—including by Dexter Zhao.”
Notably, the SEC requests that Binance.US be permitted to continue allowing customers to redeem their holdings from the company.
Additionally, the markets regulator wants a federal magistrate to order Binance’s holding company, Binance.US’s holding company, and Zhao to provide sworn, verified accounting. That would be the first probable comprehensive public accounting of the Binance family of businesses.
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