June 18, 2023

US Court Approves Agreement between Binance, SEC

Binance-US SEC

Binance-US SEC

US court, chaired by Judge Amy Berman Jackson, approved an agreement reached between Binance, Binance US, and the US Securities and Exchange Commission (SEC) on removing the temporary restraining order (TRO) that would freeze all Binance.US assets, according to Cointelegraph.

Jackson said earlier she would prefer that Binance and the SEC would reach an agreement rather than issuing her verdict and that is what really happened. Binance and the US SEC reportedly reached an agreement a few days ago.

“We are 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,” Binance.US said on Twitter.

According to the agreement, only employees of Binance US will have exclusive access to client funds until the litigation is resolved. US-based customers will preserve their ability to withdraw funds throughout this period. Under this deal, the largest crypto exchange and US regulator will prevent any Binance global officials from accessing Binance.US’s Amazon Web Services tools or access to private keys of wallets or hardware wallets.

“Defendants shall 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 […],” the agreement read.

Binance US also denied that the SEC presented any evidence that proved the misuse of customer assets, a matter which is confirmed by the SEC lawyers when asked by the judge.

According to the deal, Binance.US has to get “a verified written accounting” of accounts related to BAM Trading Services entities valued greater than $1,000.

Earlier, Binance US asked its users to withdraw their USD deposits by June 13, as the deposits and withdrawals will be suspended following the US authorities’ lawsuit against the leading crypto exchange. SEC accused Binance during the past week of unregistered securities and acting as an unregistered securities broker among other charges.

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