📋 Tender Overview
The Securities and Exchange Commission secured emergency relief in which the all the defendants in its litigation against Binance Holdings Limited BAM Management US Holdings Inc. BAM Trading Services Inc. and Changpeng Zhao agreed to repatriate to the United States assets held for the benefit of customers of the Binance.US crypto trading platform. The order from the United States District Court for the District of Columbia also prohibits defendants BAM Trading Services Inc. and BAM Management US Holdings Inc. together BAM from spending corporate assets other than in the ordinary course of business. The order helps ensure that Binance.US customers are permitted to withdraw their assets from the platform and that those assets that remain on the platform are protected and remain in the United States through the resolution of the SECs pending litigation against Binance Holdings Ltd. BAM and their founder Zhao.Given that Changpeng Zhao and Binance have control of the platforms customers assets and have been able to commingle customer assets or divert customer assets as they please as we have alleged these prohibitions are essential to protecting investor assets said Gurbir S. Grewal Director of the SECs Division of Enforcement. Further we ensured that U.S. customers will be able to withdraw their assets from the platform while we work to resolve the alleged underlying misconduct and hold Zhao and the Binance entities accountable for their alleged securities law violations.Specifically the order 1 requires all of the defendants to repatriate to the United States assets held for the benefit of BAMs U.S. customers 2 requires BAM to maintain U.S. customer assets in the United States for the duration of the litigation and to facilitate customer withdrawals 3 expressly prohibits BAM from transferring any assets or funds or from providing control over such assets or funds to co-defendants Binance Holdings Limited Changpeng Zhao or their affiliates 4 restricts BAM from spending assets or funds except for ordinary course business expenses and requires BAM to provide the SEC with oversight over such expenses 5 prohibits all of the defendants from destroying records 6 requires all of the defendants to submit expedited sworn accountings of certain assets to the SEC and 7 requires all of the defendants to submit to expedited discovery by the SEC on the custody and security of customer assets.
