June 20, 2023

SEC Orders Binance to Repatriate Assets

The SEC issued a Consent Order that requires the crypto asset trading platform, Binance Holdings Limited, et. al. to repatriate assets held for the benefit of U.S. customers and to prohibit the destruction of records.

Among other requirements, the Consent Order, also (i) restricts the defendants from spending assets or funds except for ordinary course business expenses, (ii) requires them to provide the SEC with oversight over such expenses; and (iii) requires them "to submit to expedited discovery by the SEC on the custody and security of customer assets."

As previously covered, the SEC charged the Binance platform with (i) unlawfully offering exchange, broker-dealer and clearing agency services without registering with the SEC, (ii) engaging in unregistered offers and sales of crypto asset securities while depriving investors of material information regarding risks and trends affecting their investments and (iii) making misrepresentations to investors while attracting "billions of dollars" in investor trading volume.