SEC files motion for restraining order to freeze Binance US assets

The US Securities and Exchange Commission asked a federal judge on Tuesday to issue a temporary injunction freezing the US assets for cryptocurrency exchange Binance.

The US District Court for the District of Columbia filed the motion a day after US regulators had sued Binance, its CEO Changpeng Zhao, for allegedly running a "web of deception," adding further pressure to the world's largest cryptocurrency exchange.

The SEC accused Binance in the motion of years of illegal conduct, including a 'disregard for US laws' and an 'evasion' of regulatory oversight.

Binance's holding company is located in the Cayman Islands. Binance.US, its US affiliate. Binance stated that the SEC motion only relates to Binance.US.

Binance.US responded to the SEC's motion by saying that its users' assets were safe, and the platform will continue with normal deposit and withdrawal procedures. The platform said it would defend its position in court, and that the SEC's action was 'unwarranted'.

The SEC claimed on Monday that Binance had artificially inflated its trading volume, diverted funds from customers, failed to limit US users from its platform, and misled investors regarding its market surveillance controls. Binance faces legal action in the US by the Commodity Futures Trading Commission and the Justice Department.