Binance and the SEC reach agreement in court
The deal imposes extensive disclosure requirements on BinanceUS, as well as the strict separation of customer funds from the parent company.
The deal imposes extensive disclosure requirements on BinanceUS, as well as the strict separation of customer funds from the parent company. However, assets will not be frozen.
According to court documents the US arm of crypto exchange Binance and the US Securities and Exchange Commission (SEC) have reached agreement on a deal. According to the documents, a U.S. judge approved the deal, which will protect customers' assets and allow BinanceUS to continue operating for the time being.
The US Securities and Exchange Commission had previously tried to freeze customers' assets out of concern that Binance might take them over. However, Binance managed to avert this with the recent settlement.
As Binance CEO Changpeng Zhao (CZ) explained on Twitter, the judge found the SEC's concerns unfounded. As part of the deal, BinanceUS commits to strictly separate access to private keys, hardware wallets and web tools from its international parent company from now on. This would also require the creation of entirely new wallets to which only Binance US employees would have access.
US customers would still be assured of a payout of their balances, the statement said. These, along with "all user deposits on all Binance platforms," have always been secure, View post on X on Twitter.
Meanwhile, the deal might prove too "onerous" for Binance, View post on X.
According to him, BinanceUS should now disclose extensive documentation on user portfolios, transfers and associated financial service providers to the SEC. This gives the SEC a de facto "advisory role," which Stark describes as a clear success for the SEC.
For violations of the imposed disclosure requirement, the crypto exchange threatens intervention by the U.S. Department of Justice, according to Stark.
Meanwhile the broader legal battle will continue. In addition to selling unregistered securities, the SEC accuses BinanceUS of misusing funds and lying to regulators.
