The Securities and Exchange Commission (SEC) has filed an emergency action request against Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings, Inc. and its founder, Changpeng Zhao. The action includes a request for a temporary restraining order to freeze assets and calls for the repatriation of assets for the benefit of clients on the Binance.US cryptocurrency trading platform.

This aggressive move by the SEC is part of a broader effort to safeguard Binance.US client assets while pursuing pending litigation against the platform and its founder. The agency’s primary goal is to ensure that client assets remain in the United States during ongoing legal proceedings.

The emergency action presents several key requests. Among them, the SEC is seeking an injunction that would force the defendants to explain why a preliminary injunction should not be issued against them. It also requires the freezing of BAM Management’s assets and instructs the defendants to repatriate any assets withheld for the benefit of BAM Trading’s or BAM Management’s clients.

In addition, the SEC is seeking additional measures related to the control and custody of BAM’s client assets. These include a prohibition on the destruction of records by defendants, mandatory sworn accounting of certain assets, authorization for expedited discovery by defendants, and approval of alternative means of notice.

This comes after the SEC filed 13 charges against Binance entities and founder Changpeng Zhao on June 5, 2023. As legal proceedings unfold, the SEC’s actions illustrate its commitment to ensuring the protection of the assets of clients involved in cryptocurrency trading.