Binance, SEC agrees to keep US customer assets in the country. Binance, the world’s largest cryptocurrency exchange, and Binance.US have agreed with the U.S. Securities and Exchange Commission to keep U.S. customer funds in the U.S. until a broad lawsuit filed this month is addressed.
The federal judge supervising the litigation must approve the accord, disclosed in court filings late Friday. The agreement permits only Binance to prevent U.S. customer assets from going abroad.US personnel access these assets.
The SEC sued Binance on June 5.US operator, saying that Binance overstated trading volumes, misappropriated customer funds, neglected to restrict U.S. customers, and deceived investors about its market surveillance systems.
The next day, the suit and the SEC’s against major U.S. exchange Coinbase (COIN.O) marked a dramatic escalation of U.S. regulators’ attack on the industry.
Binance.US will ensure that no Binance Holdings officials have private keys for its wallets, hardware wallets, or root access to Binance under the deal, which does not address the SEC complaint.US Amazon Web Services tools, court records stated.
The SEC stated on Saturday that Binance received emergency relief.US customers will safeguard and withdraw assets.
“Given that Changpeng Zhao and Binance have control of the platforms’ customers’ assets and have been able to commingle or divert customer assets as they please… these prohibitions are essential to protecting investor assets,” said SEC enforcement division director Gurbir Grewal.
“Although we maintain that the SEC’s request for emergency relief was entirely unwarranted,” a Binance spokeswoman stated Saturday. All Binance-affiliated platforms protect user funds.”
The documents said Binance.US would construct new crypto wallets that workers cannot access, offer extra information to the SEC, and agree to an expedited discovery timeline.
After SEC requested a court order to freeze its assets, Binance’s U.S. affiliate froze dollar deposits last week and offered users until June 13 to withdraw their dollar monies.
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