SEC Seeks Emergency Relief to Ensure Binance.US Customers’ Assets are Protected
The SEC filed an emergency action against Binance Holdings Limited and its affiliates, alleging improper holding and potential misappropriation of Binance.US customer assets, but the case was dismissed with prejudice on May 29, 2025.
The SEC sought a temporary restraining order to freeze assets and repatriate customer funds held by Binance.US, citing concerns over the custody and control of customer assets. The agency's motion aimed to protect the full value of customers' holdings, but no specific dollar figures were disclosed. The case was ultimately dismissed with prejudice on May 29, 2025, following a joint stipulation between the SEC and the defendants.
The Securities and Exchange Commission (SEC) filed an emergency action against Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings Inc., and founder Changpeng Zhao, alleging improper holding and potential misappropriation of assets belonging to customers of the Binance.US platform. The agency's motion sought a temporary restraining order to freeze assets, compel the repatriation of those assets to U.S. customers, prevent record destruction, and secure sworn accountings and expedited discovery. The SEC's concerns centered on the custody and control of customer assets, but specific details of the alleged misconduct were not outlined in the emergency motion. The relief sought by the SEC aimed to protect the full value of customers' holdings, although no specific dollar figures were disclosed in the filing. On May 29, 2025, the SEC and the defendants reached a joint stipulation to dismiss the civil enforcement action with prejudice, effectively ending the case without a trial or specified monetary penalties. The dismissal preserved the emergency orders, ensuring the protection of customer assets. The case highlights the SEC's efforts to safeguard customer assets in the cryptocurrency market.
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Extracted insights
- agency Securities and Exchange Commission
- Securities and Exchange Commission Filed Emergency Action Application Seeking a Temporary Restraining Order Freezing Assets
- Securities and Exchange Commission Seeking Other Emergency Relief Against Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings, and Changpeng Zhao
- SEC Seeks Order to Show Cause Why a Preliminary Injunction Should Not Be Granted
- SEC Seeks Order Freezing the Assets of BAM Management
- SEC Seeks Order Directing Defendants to Repatriate Assets Held for Benefit of BAM Customers
- SEC Seeks Order for Other Relief Concerning Custody and Control of BAM Customers’ Assets
- SEC Seeks Order Prohibiting Destruction of Records by Defendants
- SEC Seeks Order Requiring Sworn Accountings of Certain Assets from Defendants
- SEC Seeks Order Authorizing Expedited Discovery from Defendants
- SEC Seeks Order Granting Alternate Means of Service
- Securities and Exchange Commission Filed Joint Stipulation To Dismiss With Prejudice The Commission’s Civil Enforcement Action Against Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings Inc., and Changpeng Zhao
The Securities and Exchange Commission today filed an emergency action application seeking a temporary restraining order freezing assets, directing defendants to repatriate assets held for the benefit of customers of the Binance.US crypto trading platform, and seeking other emergency relief against Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings, Inc., and their founder, Changpeng Zhao, to ensure that Binance.US customers’ assets are protected and remain in the United States through the resolution of the SEC’s pending litigation of this matter.As part of the SEC’s emergency motion, the SEC seeks (1) an order to show cause why a preliminary injunction should not be granted as to the defendants; (2) an order freezing the assets of BAM Management; (3) an order directing the defendants to repatriate assets held for the benefit of BAM Trading's or BAM Management’s (together “BAM”) customers; (4) an order for other relief concerning the custody and control of BAM customers’ assets; (5) an order prohibiting the destruction of records by the defendants; (6) an order requiring sworn accountings of certain assets from the defendants; (7) an order authorizing expedited discovery from the defendants; and (8) an order granting alternate means of service.*On May 29, 2025, the Securities and Exchange Commission filed a joint stipulation with Defendants Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings Inc., and Changpeng Zhao to dismiss, with prejudice, the Commission’s civil enforcement action against them.
The Securities and Exchange Commission today filed an emergency action application seeking a temporary restraining order freezing assets, directing defendants to repatriate assets held for the benefit of customers of the Binance.US crypto trading platform, and seeking other emergency relief against Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings, Inc., and their founder, Changpeng Zhao, to ensure that Binance.US customers’ assets are protected and remain in the United States through the resolution of the SEC’s pending litigation of this matter.As part of the SEC’s emergency motion, the SEC seeks (1) an order to show cause why a preliminary injunction should not be granted as to the defendants; (2) an order freezing the assets of BAM Management; (3) an order directing the defendants to repatriate assets held for the benefit of BAM Trading's or BAM Management’s (together “BAM”) customers; (4) an order for other relief concerning the custody and control of BAM customers’ assets; (5) an order prohibiting the destruction of records by the defendants; (6) an order requiring sworn accountings of certain assets from the defendants; (7) an order authorizing expedited discovery from the defendants; and (8) an order granting alternate means of service.*On May 29, 2025, the Securities and Exchange Commission filed a joint stipulation with Defendants Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings Inc., and Changpeng Zhao to dismiss, with prejudice, the Commission’s civil enforcement action against them.