BinanceUS responds to SEC Allegations and Preparing for Hearing on Asset Freeze

Binance.US has responded in court to the Securities and Exchange Commission's (SEC) allegations of fraud, market manipulation, and misleading customers about the location and safety of their assets.

In a new court filing, Binance.US stated that it has been making significant efforts to cooperate with the SEC's investigation since December 2020, aligning with the investigative timeline previously presented by the SEC. However, the agency contends that Binance.US has not provided satisfactory answers regarding the storage of customer assets, raising concerns about their security.

This filing marks the first pushback from Binance.US against the SEC's claims. The SEC has accused Binance.US and its parent company of redirecting over $12 billion in customer assets to funds controlled by owner Changpeng 'CZ' Zhao.

Responding to allegations of commingling customer assets with Zhao's funds, lawyers representing Binance.US's parent company, BAM Trading, clarified that customer fiat currency is kept in segregated accounts maintained with banking partners, separate from corporate funds. While Zhao owns the bank account, Binance.US maintains that he does not have signatory authority over it.

The court filing is in preparation for tomorrow's hearing on the SEC's request for a temporary restraining order on Binance.US, which, if granted, would freeze the U.S. affiliate's assets except for customer withdrawals.