For its part, Binance noted on its blog that they are disappointed in the SEC’s actions because from the beginning they have actively worked with regulators to resolve their doubts and assist in investigations.
The firm states that all of its users’ assets are safe and secure, and that they intend to defend themselves against any allegations to the contrary.
For Binance, this measure is an example of what the crypto industry is suffering, in addition to the fact that it “undermines the role of the United States as a global center of innovation and financial leadership.”
“Digital asset laws remain largely undeveloped in much of the world, and regulation through enforcement is not the best way forward. An effective regulatory framework demands collaborative, transparent, and thoughtful policy engagement, a path the SEC has abandoned,” Binance notes.
The move is the latest in a series of legal troubles for Binance, which was also sued by the US Commodity Futures Trading Commission (CFTC) in March for operating what the regulator alleged was an “illegal” exchange. and a “fake” compliance program. Zhao called the complaint “disappointing” and an “incomplete account of the facts.”
Binance is also under investigation by the Justice Department for suspected money laundering and sanctions violations, according to people familiar with the investigation.