The US SEC body is waiting to get regulatory approval to freeze the funds held by Binance, Binance, & Binance CEO Changpeng Zhao (CZ).
Binance is a top-ranked crypto firm. In America, this crypto firm provides services via an independent subsidiary BinanceUS. On 5 June, The United States Securities and Exchange Commission (SEC) sued this exchange over unregistered securities offerings & also the deep relationship between BinanceUS & Binance.
After the lawsuit against Binance & its subsidiary, the US SEC also asked for the authority to freeze the funds ( bank fund as well as crypto funds) of BinanceUS, Binance, & Binance CEO CZ.
For now, the SEC filed a request in the court for a temporary
restraining order filing to further expedite the matter.
Here the charges against Binance & its subsidiary are similar to what FTX exchange & its ex-CEO faced, but here in the case of Binance charges will be under the civil category not criminal.
Because of this news, the majority of the Binance customers are in fear & they are thinking that their funds will also be frozen by the US SEC in near future.
Binance CEO CZ confirmed that any kind of action by the US SEC or any other regulatory body will not come into impact against the BinanceUS exchange, not Binance.com.
A financial news reporter said that the SEC’s allegations are showing that Binance & BinanceUS custody assets are not separate so there is still a very big risk.
According to that reporter, people should not consider Binance.com as a 100% safe platform under these situations because the SEC is very powerful.
Read also: American securities regulator says Cardano, Polygon, and Matic are security tokens
