Binance.US reaches a deal with SEC and avoids asset freeze

by Jun 18, 2023CryptoNews0 comments

Binance.US, the U.S. arm of the global crypto exchange Binance, has announced that it has reached an agreement with the Securities and Exchange Commission (SEC) over a lawsuit filed by the regulator. The agreement, which was approved by U.S. Judge Amy Berman Jackson on June 17, dismisses a previous request by the SEC to freeze all Binance.US assets 

The SEC had accused Binance CEO Changpeng “CZ” Zhao of having access to Binance.US customer funds and transferring $12 billion of Binance’s funds through an entity he controlled called Merit Peak Binance.US and Zhao denied these allegations and said that the SEC had no evidence of any misuse of customer funds 

According to the terms of the agreement, only Binance.US employees will have access to client funds until the litigation is resolved. U.S.-based customers will retain the ability to withdraw funds throughout this period.The agreement also prevents any access by Binance global officials to private keys of wallets, hardware wallets, or root access to Binance.US’s Amazon Web Services tools .

Furthermore, the agreement requires Binance.US to repatriate to the United States, transfer to BAM Trading, and confirm that BAM Trading maintains possession, custody, and control in the United States of all fiat currency and crypto assets that are deposited, held, traded, or accrued by customers Binance.US must also provide " a verified written accounting" of accounts related to BAM entities valued greater than $1,000 

Binance.US expressed its satisfaction with the outcome of the case and said that it was "pleased to inform you that the Court did not grant the SEC’s request for a TRO and freeze of assets on our platform which was clearly unjustified by both the facts and the law&quot 

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