Federal Judge Denies SEC’s Asset Freeze Request for Binance.US
A federal judge in Washington, D.C. has denied a request by the Securities and Exchange Commission (SEC) to freeze the assets of Binance.US, the cryptocurrency exchange’s U.S. subsidiary.
In a ruling on Tuesday, U.S. District Judge Amy Berman Jackson said that the SEC had not met its burden of showing that Binance.US was likely to violate securities laws or that freezing its assets was necessary to prevent irreparable harm.
The SEC had argued that Binance.US was operating as an unregistered securities exchange and that it had failed to comply with a subpoena for documents related to its business.
Binance.US has denied the SEC’s allegations and said that it is fully cooperating with the investigation.
The ruling is a setback for the SEC, which has been ramping up its enforcement of cryptocurrency regulations.
It remains to be seen whether the SEC will appeal the ruling.
Binance US does not disclose the amount of assets it holds. However, in a recent filing with the Securities and Exchange Commission (SEC), Binance US said that it had $2.2 billion in customer assets as of March 31, 2023. This includes both fiat currency and cryptocurrency.
Additional Details from News Reports
According to news reports, here are some additional details:
- The SEC had asked the court to freeze Binance.US’s assets, including cash, cryptocurrency, and property, pending the outcome of its investigation.
- The SEC alleged that Binance.US had violated securities laws by operating as an unregistered exchange and by failing to register as a broker-dealer.
- Binance.US denied the allegations and said that it was fully cooperating with the SEC’s investigation.
- The judge’s ruling is a major victory for Binance.US and a setback for the SEC.
- It remains to be seen whether the SEC will appeal the ruling.
Potential Implications of the Ruling
The ruling could have several implications:
- The ruling could make it more difficult for the SEC to enforce its regulations against cryptocurrency exchanges.
- It could also lead to more lawsuits against cryptocurrency exchanges.
- The ruling could also lead to more regulation of the cryptocurrency industry.