• The SEC recently initiated a move to freeze the assets of Binance.US
• Binance.US’s legal team has responded to the SEC’s filing
• The lawyers argue that the request could lead to the downfall of Binance.US’s business

Last week, the U.S. Securities and Exchange Commission intensified its crypto enforcement actions by filing a lawsuit against Binance, the world’s top cryptocurrency exchange.

The SEC didn’t stop at the lawsuit against Binance; it also sought an immediate asset freeze for Binance.US, requesting a temporary restraining order from the court. Binance.US lawyers have strongly opposed the SEC’s request in a recent court filing.

SEC’s Request Could ‘Effectively Terminate’ Binance.US’s Business

In a court document filed on Monday, June 12, the legal team representing Binance.US criticized the SEC’s request for a temporary restraining order on assets belonging to BAM Trading (Binance.US) and BAM Management (Binance.US’s managing entity) as ‘unjustifiable.’

The lawyers argued that the SEC’s request was unwarranted, stating that the company had made significant efforts to negotiate a compromise with the SEC regarding its application for a restraining order, in accordance with court instructions on June 7.

Moreover, they contended that the agency’s request could have disastrous consequences on the cryptocurrency exchange’s operations and its ability to defend itself.

‘The requested relief would primarily harm BAM’s customers, effectively put BAM out of business, and prevent BAM from defending itself in this litigation,’ Binance.US’s lawyers claimed, adding that it would no longer be able to make payments to employees and other service providers.

The lawyers pointed out that these impacts are already becoming apparent, referencing a recent decision by a Binance.US banking partner to stop providing settlement services for the company. As DailyCoin previously reported, this has forced the exchange to transition to a crypto-only model.

A hearing on the temporary restraining order request is scheduled for Tuesday, June 13.

On the Other Hand

The SEC argues that the restraining order prevents Binance from accessing U.S. customer deposits and theoretically allows the exchange to continue processing withdrawals.

Why It Matters

If the SEC’s request to freeze Binance.US’s assets is granted, it could have far-reaching implications on the cryptocurrency exchange’s operations and its customers.