SEC Asks For Emergency Order To Freeze Binance US Assets Anywhere In the World

The U.S. Securities and Exchange Commission (SEC) has filed an emergency motion seeking to freeze the assets of Binance's U.S. platform and repatriate the funds held by its customers, including both fiat currency and cryptocurrencies. CNBC reports: The freezing order only applies Binance's two U.S. holding companies, not to the non-U.S. regulated international exchange. The order would apply to dozens of accounts held at Axos Bank, the defunct Silvergate Bank, Prime Trust, and other institutions. Two foreign entities also controlled by Zhao, Sigma Chain and Merit Peak, served as conduits for billions of dollars of customer money that was improperly commingled with Binance's funds, the SEC has alleged.

The emergency restraining order was necessary, the regulator argued, to "prevent the dissipation of available assets for any judgment, given the Defendants' years of violative conduct, disregard of the laws of the United States." The order also compels Binance's founder, Changpeng Zhao, to "show cause why a preliminary injunction" against Zhao and his two holding companies "should not be entered." The restraining order would also prevent all three entities from destroying evidence. On Monday, the SEC filed a lawsuit against Binance and the company's founder, Changpeng Zhao, accusing the exchange of mishandling customer funds as well as lying to regulators and investors about its operations.

ha moved

[awwshit]

I played around with small amounts of crypto a couple of years ago. I just recently moved everything out of Binance. And into Coinbase, ah ha ha ha. Oh wait...

Re:

[sound+vision]

I moved mine into Mt. Gox. Those big players are just too mainstream to trust.

Oh noes! SBF set us up the bomb!

[thesjaakspoiler]

SBF must have ratted out Changpeng in order for a significant reduction of his 7x lifesentence.
Or was is Caroline?
She is too smart to go to jail for financial fraud or hot office orgies.

Re:

[Joe_Dragon]

better to get life in club fed vs life in FPMITA

was it THE whistleblower we heard about?

[kiviQr]

"The SEC announced a record $279 million award to a whistleblower. The unidentified whistleblower aided in the successful enforcement of SEC-related actions."

I thought by Binance's definition...

[Petersko]

... that customers didn't have positions with them. All the money escapes into general coffers because they aren't "deposits".

https://www.cnbc.com/2023/05/2... [cnbc.com]

In a statement to Reuters, Binance denied mixing customer deposits and company funds. “These accounts were not used to accept user deposits; they were used to facilitate user purchases” of crypto, said spokesperson Brad Jaffe. “There was no commingling at any time because these are 100% corporate funds.” When users sent money to the account, he said, they were not depositing funds but buying the exchange’s bespoke dollar-linked crypto-token, BUSD. This process was “exactly the same thing as buying a product from Amazon,” Jaffe said.

Which, of course, makes everything fine and dandy, totally above board, moral, ethical, and damned-near philanthropic. All they have to do is give people their BUSD to satisfy this request.

I really do yearn for certain elements of the past

[Petersko]

Not polio, or waste buckets dumped from second floor windows, mind you... I don't idealize the past and under no circumstances would I want to live in Victorian England... but I think a town square with stocks and shackles is a lost gem. Less so public beheadings, but there is something to a group spectacle.

Some people have found a playground where they can work an immature system of rules to the tune of billions. I don't know what you do with those people. They've completely bypassed the old system of simp

A prerequisite of CBDCs

[Rujiel]

is the destruction of competing digital currencies. If you think crypto is horseshit, just wait for the screw job the banks are going to pull on us with those.