MOTION for Order Directing Counsel for Plaintiff to Comply with Applicable Rules of Conduct by BAM MANAGEMENT US HOLDINGS INC., BAM TRADING SERVICES INC.. (Attachments: # (1) Declaration of Adam J. Fee, # (2) Exhibit 1 - Transcript, # (3) Exhibit 2 - SEC Press Release, # (4) Text of Proposed Order)(Canellos, George)
Page 1 Exhibit 2Page 2 Press Release
SEC Secures Emergency Relief to Protect
Binance.US Customers’ Assets
Order ensures platform customers can continue to withdraw their
assets
FOR IMMEDIATE RELEASE
2023-Washington D.C., June 17, 2023 — The Securities and Exchange Commission today 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
SEC’s 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 SEC’s 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 BAM’s 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.
###
Related MaterialsPage 3 Consent Order
PDF Page 1
PlainSite Cover Page
PDF Page 2
Case 1:23-cv-01599-ABJ Document 74-3 Filed 06/21/23 Page 1 of 3
Exhibit 2
PDF Page 3
Case 1:23-cv-01599-ABJ Document 74-3 Filed 06/21/23 Page 2 of 3
Press Release
SEC Secures Emergency Relief to Protect
Binance.US Customers’ Assets
Order ensures platform customers can continue to withdraw their
assets
FOR IMMEDIATE RELEASE
2023-110
Washington D.C., June 17, 2023 — The Securities and Exchange Commission today 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
SEC’s 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 SEC’s 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 BAM’s 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.
###
Related Materials
PDF Page 4
Case 1:23-cv-01599-ABJ Document 74-3 Filed 06/21/23 Page 3 of 3
Consent Order
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