June 13, 2024

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Binance and the SEC have reached an agreement to keep the assets of US clients in the country

New York

Binance and the US Securities and Exchange Commission reached an agreement to avoid a complete freeze of the platform’s assets in the US and to keep clients’ assets in the US, after a US district judge signed off on the approval order filed on Saturday.

The agreement was reached amid widespread persistence lawsuit filed by the SEC, which could take months if not years to resolve, accusing the company of Managing an illegal stock exchange.

The defendants, who include CEO Changpeng Zhao, agreed to return the assets held for the benefit of the American clients. The agreement ensures that these assets are protected and remain in the United States to prevent them from being moved abroad, according to the approval order.

SEC Chairman Gary Gensler said statement About the lawsuit in June.

The agreement said that Binance Holdings officials, including Zhao, would not be able to control these assets. The agreement explicitly ordered that the assets and funds could not be transferred to them, and would remain under local control.

The order also prohibits defendants from spending the company’s assets on anything other than “in the ordinary course of business,” and They must give the regulatory agency oversight of expenditures, The SEC said Saturday.

the On Saturday, the Saudi Electricity Company said it had secured the emergency relief to protect the assets of American customers.

“Since Changpeng Zhao and Binance control the assets of the platform’s customers and have been able to mix customer assets or transfer customer assets as they wish, as we have claimed, these prohibitions are necessary to protect the assets of investors,” said Gurbir S. Grewal, director of the SEC’s enforcement division, adding that the agreement ensures US clients can withdraw their assets.

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The Commission Crack down on the largest crypto companies in the world, and filed a scathing complaint against Coinbase in early June as well. The industry has long been scrutinized for a lack of regulatory oversight.

The Securities and Exchange Commission asked a federal court to issue a temporary restraining order to freeze Binance’s US assets in early June, Reuters. mentioned.

When reached for comment, Binance.US directed CNN to a Twitter thread on Sunday, which stated that the company is looking to continue defending itself in court.

“This fight has damaged our business and our reputation but not our fighting spirit or our resolve to defend ourselves against unwarranted accusations and ‘order by enforcement’ tactics that do not belong in our justice system,” the tweet said. He saidAdding to the earlier asset freeze request would have effectively shut down her business.