Securities and Exchange Commission Takes Action Against Changpeng Zhao and Binance for Alleged Misuse of Investor Assets

The U.S. Securities and Exchange Commission (SEC) has issued an order requiring Changpeng Zhao and Binance to repatriate to the U.S. assets held for the benefit of BAM’s U.S. customers, maintain customer assets in the U.S., and refrain from transferring any assets or funds to co-defendants Binance Holdings Limited, Changpeng Zhao, or their affiliates. The order also restricts BAM from spending any assets or funds except for ordinary course business expenses and requires them to provide the SEC with oversight over such expenses, prohibits all defendants from destroying records, and requires all defendants to submit expedited sworn accountings of certain assets to the SEC and to submit to expedited discovery by the SEC on the custody and security of customer assets.