Binance.US has disputed the U.S. Securities and Exchange Commission’s (SEC) emergency request to freeze the exchange’s assets, calling it “draconian and overly burdensome.”
The company claims that such a decision will “virtually put an end” to its activities, and the subsidiary trading platform BAM Trading Services will suffer the most. A hearing on the motion has been scheduled for June 13.
“The assistance requested will primarily harm BAM customers, effectively put BAM out of business, and prevent BAM from defending itself in this lawsuit,” the document says.
Binance.US claims that “all claims by the SEC are untenable” because the regulator has not yet “identified a single securities transaction on BAM.”
The company has made “significant efforts” to cooperate on the Commission’s investigation, which has been ongoing since 2020, the exchange said.
“The fact that numerous cryptocurrency exchanges, including BAM, have been operating in the United States for years without interference from the SEC disproves the claim that [криптовалюты] are clearly subject to securities laws,” Binance.US added.
On June 5, 2023, the SEC sued the bitcoin exchange and its CEO, Changpeng Zhao. The regulator brought 13 charges, including the sale of unregistered securities.
The company responded by issuing a statement saying it was prepared to “resolutely defend itself”.
Binance.US later announced a suspension of USD deposits and advised clients to withdraw fiat funds by June 13th.
Recall that on June 6, the Commission filed a similar lawsuit against the Coinbase exchange.
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