SEC-Binance.US agreement approved by US court.

On June 17th, Judge Amy Berman Jackson of the United States approved an agreement between Binance.US, Binance, and the Securities and Exchange Commission (SEC), which dismissed a previous temporary restraining order (TRO) that would have frozen all Binance.US assets. The sides reportedly reached an agreement on June 16th.

Judge Jackson stated on June 14th that she would prefer the parties reach an agreement on their own rather than have her rule. As per the approved 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 deal between the crypto exchange and the U.S. regulator 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. Additionally, the deal asserts that Binance.US must take immediate action to ensure “a verified written accounting” of accounts related to BAM entities valued greater than $1,000.

The SEC filed an emergency motion for a temporary restraining order on Binance.US on June 6th, after accusing Binance CEO Changpeng “CZ” Zhao of having access to Binance.US customer funds in a lawsuit. The regulator alleged Zhao moved $12 billion of Binance’s funds through an entity he controlled called Merit Peak. Ahead of the hearing on the restraining order, Binance.US and Zhao submitted a joint memorandum denying that funds were ever mishandled. According to them, the SEC has been unable to identify a single instance where Binance.US customer funds have been misused.

In a Twitter comment on the case, former chief of the SEC’s Office of Internet Enforcement John Reed Stark noted that the agreement includes a “particularly interesting provision” about the repatriation of certain assets to the U.S.

The article also mentions that there has never been any evidence presented by the SEC concerning misuse of customer assets. Binance.US said on Twitter that they were pleased that the Court did not grant the SEC’s request for a TRO and freeze of assets on their platform which was clearly unjustified by both the facts and the law.

This article also mentions a magazine piece on the topic of crypto regulation and whether SEC Chair Gary Gensler has the final say.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Policy

The United States Department of Energy Sets its Sights on Crypto Miners

The U.S. Energy Department is taking steps to assess crypto mining companies' energy consumption in light of the incr...

Market

Bitcoin Bulls Hesitate: Will Altcoins Take the Lead?

Fashionista, get ready for the next leg of the up-move with SOL, LINK, NEAR, and THETA, despite Bitcoin remaining ran...

News

Nigerian Government Grants $289,980 to Super Smart Startups and Researchers

45 AI startups and researchers in Nigeria may receive a grant of $6,444 (5 million naira) from the Federal Government.

Bitcoin

Bitcoin Continues to Soar: Is Another All-Time High Imminent?

Bitcoin had a remarkable February, experiencing a significant increase of $18,000 in value and surpassing $60,000. Th...

Bitcoin

How vanity addresses work: putting words into a Bitcoin address.

A vanity Bitcoin address is a uniquely personalized BTC address that incorporates a specific pattern or word within i...

Market

Jane Street and Other Trading Giants May Join Blackrock's BTC ETF Stay Tuned for First Mover Americas!

Fashionista, stay up-to-date on the latest price trends in crypto markets as of Nov. 1, 2023!