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“Operations would quickly grind to a halt” Without the ability to pay employees, vendors, suppliers and professionals or to maintain the trading platform, the operations will quickly grind to a halt, Binance.US attorneys said Monday in a court filing. “With a freeze of all corporate assets, banking partners would most likely cease to honor requests to transfer funds for any purpose, including customer redemptions,” the exchange added. The SEC had requested the federal court to seize assets of  Binance.US , after it sued Binance entities and founder Changpeng Zhao last week, alleging “blatant disregard of US securities laws” and “years of violative conduct” that puts customer funds at risk. Binance assures US customer assets are safe Binance.US attorneys further argued in their court filing that US customer assets are safe and said “there is no need for the draconian relief sought by the SEC.” As reported earlier, the US SEC had filed an emergency action application for a tempo...

Binance, Binance US, and Changpeng Zhao (CZ) have been sued by the Securities and Exchange Commission (SEC) in a case that alleges they offered and sold unregistered securities, failed to register their functions with the SEC, wash-traded tokens, mishandled customer funds, and used Binance US as a shield to attract regulatory attention. This follows a similar case launched by the Commodities and Futures Trading Commission (CFTC) several weeks ago. Earlier reporting by Forbes examined the “Tai Chi” documents, which were created for Binance by a consultant, and recommended setting up a US-based entity to attract the attention of regulators and distract from other violations. The SEC case alleges that CZ followed this plan in establishing Binance US. Binance’s chief compliance officer (CCO) is quoted in the complaint as saying, “We do not want [Binance].com to be regulated ever.” This same executive also suggested that “on the surface, we cannot be se...