Binance’s attorneys say that the SEC has no evidence to support its allegations of asset commingling. They argue that the regulator’s claims are based on speculation and conjecture.
In response to the SEC’s action, Binance, BAM Management, BAM Trading, and CEO Changpeng Zhao filed a combined court filing, accusing the SEC of making “baseless” and “without merit” allegations.
The defendants in the SEC’s lawsuit against Binance have told a court that the regulator must “follow the rules” in its case against the crypto company.
The SEC’s effort to freeze Binance’s assets was unsuccessful, and the firm has now filed a request in court to prevent the regulator from attempting it once again.
The court advised both parties to find an agreement.
The defendants in the SEC’s lawsuit against Binance claim that the court pressed the regulator for evidence to support its allegations of customer asset commingling.
The SEC’s attorneys initially failed to answer the court’s question about whether there was any evidence of customer asset misuse. However, they eventually admitted that there was no such evidence.
Binance has called the allegations of asset commingling “baseless,” stating that there is no evidence to support them.
The court was not convinced by the SEC’s evidence and asked for more to be provided.
The SEC’s attorneys said that they have not seen any evidence of money flowing out of the United States from Binance.US.
After being questioned by the court, the SEC withdrew its request for a total asset freeze and reached a deal with Binance to prevent the issuance of a temporary restraining order.