US Judge Amy Berman Jackson approved a settlement between Binance.US, Binance and the Securities and Exchange Commission (SEC) on June 17, dismissing a previous temporary restraining order (TRO) that would freeze all Binance.US assets.
Judge Jackson said on June 14 that she I would prefer that the parties reach an agreement on your own instead of having your period. According to reports, the sides an agreement was reached on June 16.
โWe are pleased to inform you that the Court did not grant the SEC's request for a TRO and asset freeze on our platform, which was clearly not justified by both the facts and the law,โ Binance.US said on Twitter.
Under the approved agreement, only Binance.US employees will have access to client funds until the dispute is resolved. US-based clients will retain the ability to withdraw funds during this period.
We want to provide an update on the current battle. https://t.co/AZwoBOh0gq meets the SEC. We are pleased to inform you that the Court did not grant the SEC's request for a TRO and asset freeze on our platform, which was clearly not justified by both the facts and...
โBinance.US (@BinanceUS) June 17, 2023
The agreement between the cryptocurrency exchange and the US regulator also prevents global Binance officials from accessing the private keys of the wallets, hardware wallets or root access to Binance's Amazon Web Services tools. .US.
"The SEC has never presented any evidence regarding the misuse of client assets. In fact, SEC lawyers admitted in court earlier this week, when questioned by the judge, that they had no evidence to suggest that something like that had happened,โ Binance.US wrote regarding the allegations of fund mismanagement.
In a Twitter comment on the case, former head of the SEC's Office of Internet Compliance John Reed Stark noted that the agreement includes a "particularly interesting provision" on the repatriation of certain assets to the US.
โDefendants will be required 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 currencies and crypto assets deposited, held, traded, or accumulated by clients. [...]โ, says the agreement.
Furthermore, the agreement states that Binance.US must take immediate steps to ensure "a verified written accounting" of accounts related to BAM entities valued at more than $1,000.
The second filed an emergency motion for a temporary restraining order on Binance.US on June 6, after accusing Binance CEO Changpeng โCZโ Zhao of accessing Binance.US client funds in a lawsuit. The regulator alleged that Zhao moved $12 billion of Binance funds through an entity he controlled called Merit Peak.
Prior to the hearing on the restraining order, Binance.US and Zhao filed a joint memorandum denying that the funds had ever been misappropriated. According to them, the SEC has not been able to identify a single instance in which funds from Binance.US clients have been misused.
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