- Exchange CEO allegedly suspected of misusing client funds
- The agency filed two petitions to speed up the process
- They also insist on repatriation of assets if the request is granted
On June 6, the Securities and Exchange Commission (SEC) reapplied to the court to seize the crypto assets of Binance and its CEO. The reason for this was the accusation that CZ had misused client funds.
The appeal can be read here. In the petition, the SEC alleges that Binance diverted its customers’ funds to Zhao’s personal funds.
It is allegedly with these funds that CZ bought his $11 million yacht.. Also, the agency says, the assets on the platform were used to buy BUSD in order to maintain the stabelcoin.
These SEC demands are exactly the same as those made by the regulator when it froze the Bankman-Friede accounts. But the Commission’s case against Binance and its CEO is a civil, not a criminal one.
The agency insists on an immediate freeze in order to protect customer funds.. If the petition is granted, the assets will be confiscated until the trial is over. The company has not yet commented on the regulator’s new demands.</nbsp;
We should remind you that the SEC went to court earlier this week. Binance, a number of its portfolio companies and CZ itself have been charged with 13 counts, including violation of industry laws.
The company believes the regulator’s claim is without merit.. Notably, in the process, the SEC defined a number of assets as securities. A court victory over Binance would bring most of the big tokens under the agency’s control and set a very dangerous precedent.