Did the SEC Mislead the Public?

Binance.US and its affiliated companies have accused the Securities and Exchange Commission (SEC) of being dishonest and misleading. Seeking court intervention on June 21, Binance and its partners are challenging the SEC's claims regarding handling customer assets.

The filing specifically referred to SEC Enforcement Director Gurbir Grewal's statements, where he suggested that Binance and its CEO, Changpeng Zhao, could "commingle customer assets or divert customer assets as they please."

Additionally, the filing sought an order for all involved parties to return to the United States. On June 21, SEC was forced to admit in court that no such violations had taken place when questioned about potential assets being diverted from BAM Trading Services and BAM Management US Holdings.

This recent motion stems from a consent order between the SEC and Binance.US that outlined how the exchange could utilize its funds. Binance viewed the SEC's subsequent press release about handling customer assets as a misleading and flagrant violation of this agreement.

The press release claimed that the SEC had obtained "emergency relief" to safeguard the assets of Binance.US clients, implying that Binance had control over these assets and could potentially misuse them. Binance vehemently disputed these claims, pointing out that the SEC had admitted to having no evidence to support them.

The BAM companies assert that these statements could have a significant impact on the case and are requesting the court to compel the SEC to adhere to established rules of conduct. If approved, this motion could prevent the SEC from making certain public statements that Binance argues would lead to market confusion.

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What is Binance:

Binance positions itself as the world’s leading blockchain ecosystem and crypto-asset infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. The Binance platform aims to increase the freedom of money for users and features a comprehensive portfolio of crypto-asset products and offerings, including trading and finance, education, data and research, social good, investment and incubation, decentralization, and infrastructure solutions.

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