Wednesday, June 12, 2024

Binance Reaches Agreement with SEC, Resolving Asset Freeze Attempt

Binance-US Reaches Mutual Agreement with SEC to Safeguard Customer Assets”

In a significant development, Binance-US has successfully resolved its disagreement with the U.S. Securities and Exchange Commission (SEC) regarding an attempt to freeze the exchange’s assets. The SEC and Binance-US have come to a consensus, as outlined in a recent court filing, wherein Binance-US will retain exclusive possession of its customers’ assets.

The court’s Consent Order specifically stipulates that Binance-US, through its officers, employees, or an independent third-party custodian within the United States, will ensure the sole possession, custody, and control of all customer assets associated with BAM Trading and BAM Management. This agreement demonstrates the commitment of both parties to the security and integrity of user funds.

Changpeng Zhao, Binance’s CEO, expressed satisfaction with the resolution, emphasizing that while they firmly believed the SEC’s emergency relief request was unwarranted, they are pleased to have reached mutually acceptable terms. Zhao reassured Binance users that their funds have always been and will continue to be safe and secure across all Binance-affiliated platforms.

It’s important to note that the agreement between Binance-US and the SEC is subject to approval by the presiding judge overseeing the case. Reuters reported on this crucial next step, highlighting that final confirmation is still pending.

Earlier this month, the SEC filed a lawsuit against Binance, alleging various violations of securities laws and making additional accusations. The SEC’s attempt to freeze Binance’s assets had raised concerns within the Binance-US camp, as such an action would have effectively crippled the firm’s operations, rendering it unable to finance its activities.

Binance’s legal team argued that the SEC’s asset freeze request did not meet the criteria for an “emergency,” as the regulatory agency failed to substantiate any claims of mishandling or misuse of customer funds by Binance.

Through this amicable resolution, Binance-US and the SEC have taken significant strides toward ensuring the continued security and stability of the cryptocurrency exchange industry, while also addressing regulatory concerns in a constructive manner.

Read Also: Brad Garlinghouse highlights ongoing pursuit for clarity as Ripple case approaches resolution

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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