The War Continues: Binance.US Counters Motion to Freeze Funds, Adds Former SEC Enforcement Official to Legal Team Amid Lawsuit

“Given the gravity of the fraud alleged by the CFTC and SEC (which might also be the tip of the iceberg of any criminal indictment), a DOJ prosecutor would certainly seek prison time for anyone convicted or pleading guilty to Binance-related crimes.”

As a reminder, on June 5, the SEC initiated a significant legal action against Binance and its affiliated entities. The SEC accused the cryptocurrency exchange of operating as an unregistered securities exchange and permitting U.S. customers to trade cryptocurrencies that the SEC considers as securities.

Furthermore, the regulator alleged that Binance CEO Changpeng Zhao (CZ) had access to Binance.US customer funds and claimed that he transferred $12 billion of Binance's funds through a privately-controlled entity called Merit Peak.

The following day, on June 6, the SEC filed an urgent motion for a temporary restraining order against Binance. The motion sought to freeze assets held on Binance.US until the crypto exchange could demonstrate that CZ or any other Binance executive could not move the funds.

Although Binance and Binance.US have consistently refuted the SEC's claims on social media throughout the week, an accompanying joint memorandum filed alongside the motion marked their first official response to the accusations.

The memorandum argued that the SEC failed to provide any evidence of mishandling or misuse of customer assets by BAM, the entity responsible for Binance's customers.

"The SEC has manufactured an 'emergency' solely for its own purposes, as it cannot identify a single instance in which BAM customer assets were mishandled or misused," the memorandum stated.

Moreover, the SEC has faced backlash from U.S. lawmakers and industry leaders who have raised concerns about the regulator's aggressive tactics in crypto enforcement.

On June 12, Representative Warren Davidson put forth a bill with the aim of restructuring the commission and called for the removal of SEC Chair Gary Gensler from his position.

This move comes as a response to the perceived heavy-handed approach taken by the SEC in its oversight of the cryptocurrency industry.

In the face of the ongoing challenges and legal battles, it is evident that Binance.US is determined not to back down. With the addition of experienced legal professionals to their team, they are positioning themselves to vigorously defend against the allegations brought forth by the SEC.

If proven not guilty, Binance.US could potentially set an example for the entire industry, demonstrating the importance of fighting for the crypto community regardless of the circumstances. As the legal proceedings unfold, the outcome of this case may have far-reaching implications for the crypto industry as a whole.