PORTLAND, Oregon – The US Securities and Exchange Commission (SEC) said it is seeking to freeze Binance.US’ assets and protect customer funds, including through the repatriation of client investments held abroad.

The agency said on Tuesday that it filed an emergency action application to a court for a temporary restraining order.

The regulator also asked the judge to back steps 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”.

The filing lists Binance Holdings, BAM Trading Services, BAM Management US Holdings as well as founder and chief executive officer Zhao Changpeng as defendants.

In a lawsuit on Monday, the SEC accused Binance and Mr Zhao of mishandling customer funds, misleading investors and regulators, and breaking securities rules.

Binance.US’ response

Binance has said it intends “to defend our platform vigorously”.

In a Tuesday tweet, Binance.US described the motion for a temporary restraining order as “unwarranted”.

“User assets remain safe and secure and the platform continues to be fully operational with deposits and withdrawals functioning as normal,” it added.

Among other requests, the SEC wants to ensure that any transfer of Binance.US customer assets exceeding US$100,000 (S$135,000) should be approved in writing by two of the company’s senior executives and certified by them as compliant.

In a memorandum, the SEC said “Zhao and Binance have a pattern and practice of commingling customer funds” as well as “in moving funds outside of the US and/or on the blockchain where they are outside of this court’s reach”.

The memorandum said Binance.US customer assets total over US$2.2 billion and described Mr Zhao as “a foreign national who has made overt his views that he is not subject to the jurisdiction of this court”. BLOOMBERG