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Binance Agrees with SEC to Retain US Client Funds

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A court filing made on the latter part of Friday, June 16 revealed that the world’s biggest crypto exchange Binance and Binance.US has struck a deal with the United States SEC.

This agreement will ensure that the United States Customer funds remain within the country waiting for when the legal action that was filed this month by SEC will be resolved.

However, the agreement came with a condition.

It is only the employees of Binance US that are allowed to access these assets.

READ ALSO: Binance Sends A Cease and Desist Order to Binance Nigeria Ltd.

More Details of the Story

Earlier in June, the United States Securities and Exchange Commission (SEC) filed a lawsuit against Binance and Changpeng Zhao, its CEO and founder.

Supposedly, the top cryptocurrency exchange inflated its trading volumes artificially, diverted its user assets, misled investors on market monitoring controls, and failed to restrict United States users from the platform.

However, this agreement will not solve the matter of the SEC lawsuit against Binance.

But it will aid the crypto firm take steps to make sure that none of Binance Holdings officials can have access to private keys for its hardware wallets, various wallets, or core access to Binance.US’s Amazon Web Services tools.

As per additional provisions of the latest agreement, Binance.US will build new cryptocurrency wallets which will not be accessible to its international employees.

At the same time, the exchange will provide more information to the Securities and Exchange Commission.

How is the Securities and Exchange Commission Responding?

According to a statement made on Saturday by the director of SEC’s division of enforcement Gurbir S. Grewal,

“since Binance and Changpeng Zhao are in control of Binance’s customer assets and able to merge customer assets or divert customer funds at leisure, as we reported, these prohibitions are crucial to protect the investor assets.”

In addition, “we made sure that the United States users can withdraw their funds from the exchange while we work to solve the supposed underlying misconduct and hold the Binance entities and CZ liable for their supposed violations of securities law”.

The SEC spokesman added that “although we accept that SEC’s order for an emergency restraining order was unwarranted, we are satisfied that the dispute over the request has been resolved mutually in agreeable terms.

The assets of users will always be safe and secure on every Binance-related platforms.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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