Brief Summary: The U.S. Securities and Exchange Commission (SEC) has requested an emergency order from a Washington, D.C. federal judge to freeze the assets of Binance's U.S. subsidiary, accusing the company and its founder, Changpeng Zhao, of disregarding U.S. law. The order, if granted, would mandate the return of fiat and crypto assets from Binance's U.S. platform, held by its customers. This directive would only affect Binance's two U.S. holding companies and certain accounts at various financial institutions, not impacting the international exchange. The SEC alleges that two foreign entities controlled by Zhao, Sigma Chain and Merit Peak, inappropriately mingled billions of dollars of customer money with Binance's funds. The regulator has launched a lawsuit against Binance and Zhao, claiming they committed thirteen separate counts of investor fraud, improper fund commingling, and unlicensed operation as a broker, dealer, and clearing house. The emergency order aims to prevent potential asset dissipation for judgment payment and to secure evidence against Zhao and his companies.
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