The United States Securities and Exchange Commission (SEC) has made further claims in its lawsuit against Binance.US, asserting that investors’ funds are in a precarious position.

In a filing submitted on June 5, the regulatory body alleges that the defendants, including Binance CEO Changpeng Zhao and Binance Holdings Ltd., have not only amassed billions of U.S. dollars for themselves but have also exposed investors’ assets to significant risk.

The SEC contends that the defendants deliberately circumvented U.S. regulatory oversight while providing securities-related services to U.S. users, a situation that endangers billions of dollars in U.S. investor capital and places it at the mercy of Binance and Zhao. According to a report from CNBC, the SEC cites a figure as high as $2.2 billion.

To illustrate its concerns, the SEC filing highlights a case where billions of U.S. dollars belonging to customers of both Binance platforms were “commingled” in an account controlled by Merit Peak Limited, an entity associated with Zhao.

The funds were subsequently transferred to a third party, ostensibly in connection with the purchase and sale of cryptocurrency assets.

The SEC argues that this arrangement has afforded Zhao unbridled control over billions of deposited assets on the Binance.US platform, without any oversight or safeguards in place to ensure the proper security of those assets.

While the SEC seeks to freeze assets as part of its efforts, Binance.US has reassured its users that their funds on the platform remain secure.

In a separate development on June 6, the SEC filed a motion for a restraining order against Binance, citing mishandling of user funds and operation with unregistered securities. Freezing assets is among the actions requested in the motion.