The SEC has filed a petition in court to have Binance US’s assets frozen

The SEC has filed paperwork with a US federal court asking that all of Binance US’s assets be frozen.

After news surfaced that the US Securities and Exchanges Commission (SEC) is trying to freeze Binance’s US assets, the legal struggle between the two parties took a potentially dramatic turn.

According to reports, the SEC has petitioned a federal court in the United States for an explicit court order to freeze all of Binance US’s assets.

Sources familiar with the new situation say that the SEC is stopping a possible “dissipation of the accessible assets for any judgement,” which could happen because the suspects have broken U.S. laws for years.

According to the sources, the freezing order solely affects two US-based holding companies affiliated with Binance, which are said to have accounts at financial institutions, including Axos Bank, Prime Trust, and the bankrupt Silvergate Bank.

Binance US must return clients’ cash and cryptocurrency if court judgments are upheld. This action shows that the SEC means business when cracking down on Binance and its CEO, Changpeng Zhao (CZ).

Also Read: Binance-SEC Litigation Causes A Delay In Gopax Purchase By South Korean Regulators