The SEC has filed a motion to freeze digital assets held by Binance, Binance.US, and Changpeng Zhao, CEO of the exchange, with a request for a temporary restraining order to expedite the case.
This comes after allegations from executives and Zhao himself of diverting client funds to his own investment funds, which were allegedly used to buy a $11 million yacht and BUSD stablecoins.
The SEC stated the “application is needed on an expedited basis to ensure the safety of client assets.” Binance.US clients are still able to buy assets from the exchange, with its representatives assuring customers that their funds are secure.
However, the American division of the company called the actions of the regulator “unreasonable” in a statement on Twitter.
