Binance, the largest crypto exchange by trading volume, and the U.S. Securities and Exchange Commission (SEC) have agreed upon a reconciliation deal to prevent a potential total asset freeze at the exchange's U.S. arm, Binance.US. The agreement was signed by U.S. Judge Amy Berman Jackson, dismissing an initial request by the SEC. Earlier in June, the SEC filed an emergency action application for a temporary restraining order, requesting the court to freeze the assets of Binance.US. - In response, Binance.US asked the court to reject the request, saying that its operations would quickly come to a stopping point when it could not pay its liabilities, and a potential freeze could be misunderstood by its banking partners.
- As part of the deal, only Binance.US employees will be able to access U.S. customers' funds until the legal proceedings are finalized.
- U.S. customers will always have the ability to withdraw their funds during litigation.
- The order will also prevent any Binance global official from accessing funds, private keys of wallets, hardware wallets, or Binance.US' tools.
- Besides, Binance.US will not be able to spend corporate assets for any purpose other than covering expenses to maintain its business.
- The company said it was pleased since the disagreement was resolved on mutually acceptable terms, though the SEC's request was entirely unwarranted.
On June 5, the SEC also filed a 136-page complaint against Binance and CEO Changpeng Zhao (CZ) over U.S. law violations with 13 charges. - The allegations in the complaint include mishandling customer funds, misleading investors and regulators, violating securities laws, creating an extensive web of deception, conflicts of interest, lack of disclosure, wash trading, and calculated evasion of the law.
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