The U.S. arm of the world’s largest crypto exchange by trading volume says the recent lawsuit from the U.S. Securities and Exchange Commission (SEC) could potentially put an end to its entire operations.
According to new court documentssays Binance if the SEC is able to do so to freeze its assets, the company will effectively go bankrupt as it would no longer be able to finance any of its activities.
“If the Court considers the merits of the SEC motion, it should deny that motion. The SEC seeks unnecessary and unwarranted help. Far from asking for help, that’s “careful calibrated” to “maintain the status quo,” the SEC’s proposed remedies effectively put an end to BAM’s activities.
Among other things, the SEC is pursuing a draconian and unnecessarily burdensome freezing of all company activities without exceptions. The requested relief would primarily harm BAM’s customers, effectively bankrupt BAM, and prevent BAM from defending itself in this lawsuit.
Without the ability to pay its employees, vendors, suppliers and professionals in the ordinary course of business and to maintain it technology platform, operations would quickly grind to a halt and BAM would be unable to get it right funds his defense against this action. With a freeze on all corporate assets, banking partners would most likely no longer comply with requests to transfer money for any purpose, including customer redemption.”
According to Binance.US, client assets are safe, properly segregated and available to clients at any time, which is in part why the exchange claims the attempt to freeze its assets is unnecessary.
Binance’s lawyers also claim that the SEC’s court case does not identify any case where BAM client assets were mishandled or misused, and also questions the SEC’s idea that their application qualifies as an “emergency.”
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