The Securities and Exchange Commission (SEC) and Binance have reached an agreement that allows Binance to continue its operations in the US while the lawsuit filed by the SEC is ongoing. The SEC filed a lawsuit against Binance and its founder Changpeng Zhao (CZ) on June 5th, accusing the company of artificially inflating trading volumes, mishandling customer assets, and failing to restrict US investors from trading on Binance.com.
After the charges were announced, the SEC moved to freeze Binance’s US assets, citing the need to protect customer funds and prevent potential money transfers abroad. Binance argued that the asset freeze would force it out of business in the US. In response, the judge overseeing the case ordered both parties to find a compromise that safeguards customer assets.
According to a court filing reviewed by The New York Times, the SEC stated on Friday that Binance has agreed to relocate all assets belonging to US customers to the US. In addition, Binance’s US operations are prohibited from providing access or control of domestic assets to its international operations or CZ. Binance.US is only allowed to transfer assets for ordinary business expenses or obligations. The exchange is also required to create new customer wallets that cannot be accessed by its international employees. It’s important to note that this agreement does not resolve the SEC lawsuit and still requires approval from Judge Amy Berman.
Binance CEO CZ expressed satisfaction with the resolution of the disagreement over the SEC’s request for emergency relief. He emphasized the safety and security of user funds on all Binance-affiliated platforms.
The SEC stated that the restrictions imposed on Binance are crucial to protect investor assets given the allegations of commingling and diversion of customer assets. The regulator also confirmed that US customers will be able to withdraw their assets from the platform during the resolution of the alleged misconduct.
The SEC’s lawsuit against Binance is part of its broader crackdown on the cryptocurrency industry. Previously, the agency accused FTX founder Sam Bankman-Fried of defrauding investors. The SEC also filed a complaint against Coinbase, the largest crypto trading platform in the US, for alleged failure to register appropriately.
Please note that all products recommended by Engadget are selected by their editorial team independently of their parent company. Some of the stories on their platform may include affiliate links, which may result in them earning an affiliate commission.
Denial of responsibility! TechCodex is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Alex Smith is a writer and editor with over 10 years of experience. He has written extensively on a variety of topics, including technology, business, and personal finance. His work has been published in a number of magazines and newspapers, and he is also the author of two books. Alex is passionate about helping people learn and grow, and he believes that writing is a powerful tool for communication and understanding.
