​SEC and Binance. US signs a tentative agreement on asset access

Binance, Binance.US, and the Securities and Exchange Commission (SEC) reportedly disclosed an agreement late Friday, June 16, to temporarily limit access to customer funds exclusively for Binance.US employees. Gave.

According to report, proposed Settlement, pending approval from the overseeing federal judge, outlines measures for Binance.US to prevent root access by Binance Holdings officials to the private keys of wallets, hardware wallets or Amazon Web Services devices of Binance.US Could Additionally, the US-based crypto trading platform will reveal comprehensive information on business expenses, including estimated costs, in the coming weeks.

The proposed settlement appears to be a direct response to a motion filed by the SEC that seeks to freeze the entire assets of Binance.US during ongoing legal proceedings related to securities-related charges. The regulatory body expressed apprehension that without granting TRO, there could be a risk of offshore transfer of funds or willful destruction of important records.

However, legal representatives for Binance.US strongly oppose this notion, arguing that imposing a full freeze on all assets would essentially amount to imposing an extremely severe “death sentence” on the company.

During a hearing earlier this week, Judge Amy Berman Jackson, presiding over the District Court for the District of Columbia, advised the parties involved that it would be more beneficial for them to rely on her to prepare Instead reach an agreement on the condition proposed. a restraining order. The judge emphasized that a temporary restraining order has a limited period of two weeks, which may prove insufficient for a comprehensive and exhaustive hearing. This is especially true given the substantial amount of exhibits already submitted, which amounted to over 4,000 pages.

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The proposed agreement includes additional provisions such as the creation of new crypto wallets by Binance.US, which will be inaccessible to employees of the global exchange. In addition, Binance.US committed to providing additional information to the SEC and agreed to an accelerated discovery program. Notably, customers based in the United States will retain the ability to withdraw funds during this period.

If accepted, the proposed settlement would partially address the SEC’s concerns while the broader lawsuit moves forward. The SEC recently sued Binance and Binance.US for trading unregistered securities and allegedly mixing funds and bad practices. However, the proposed settlement does not cover the broader lawsuit.

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