Binance.US claims that the requested temporary restraining order by the Securities and Exchange Commission against its assets would “effectively end” its company and has asked the judiciary system to reject the request.
The US SEC urgent request for a temporary restraining order against its operations was criticised by Binance.US in an application on June 12 and was described as “draconian and unduly burdensome.”
On June 13, the District of Columbia’s US District Court will hold the hearing on the temporary restraining order.
BAM Trading Services Inc., the organisation that facilitates cryptocurrency trading and exchange operations for Binance.US, would be forced to close due to the restraining order, according to Binance.US, who also claimed:
“The desired remedy would primarily hurt BAM’s clients, virtually put the company out of business, and prohibit BAM from mounting a legal defence.”
Additionally, Binance.US attacked the SEC’s whole strategy for bringing litigation against the company, claiming that “all of the SEC’s claims fail” because the agency has not yet “identified a single security trading on BAM’s platform.” The SEC has claimed that at least 68 virtual currencies constitute securities at the time of publishing.
“The SEC claims that it is a given that cryptocurrencies are securities, but this is untrue. The fact that many cryptocurrency exchanges, including BAM, have functioned in the US without interference from the SEC for years rejects the argument that they are plainly covered by securities laws, according to the brief.
Moreover, according to Binance.US, “significant efforts” have been taken to assist with an ongoing SEC inquiry that started on December 20, 2020. The investigation’s findings, according to the document, include “bespoke data” on its daily activities and more than 700,000 unique communications.
On June 5, the Securities and Exchange Commission (SEC) filed a massive lawsuit over Binance and its affiliates, accusing them of refusing to register as a securities exchange and allowing U.S. consumers to trade digital assets that they claim are securities.
Furthermore, the regulator said that Binance CEO Changpeng Zhao (CZ) shifted $12 billion in Binance’s money via a privately-controlled organisation named Merit Peak and that he had access to Binance.US customer money.
The following day, on June 6, the SEC requested that funds held on Binance.US be blocked until the cryptocurrency exchange could demonstrate that the money were unable to be transferred by CZ or any other executive at Binance.
Although Binance and Binance.US have consistently refuted the SEC’s allegations on social media over the last week, the joint statement included with the filing was the first official response to the allegations.
In its defence, it claimed that the SEC has been unable to “identify a single instance in which BAM client funds were mishandled or exploited.”
The report continued, “In truth, there is no ’emergency’ here at all, other than the one produced by the SEC for its own reasons.
