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The US Securities and Exchange Commission and BAM Trading (the US arm of Binance) recently filed a request for consent that would loosen some of the restrictions of the previous SEC request to freeze the company’s assets.
The proposed new consent order would provide the SEC with more assurance and allow BAM Trading to meet payroll and other financial obligations. According to the document:
“BAM Trading and BAM Management may continue to make payments for the purchase of goods and services, wages to BAM Trading and BAM Management personnel, including pre-existing benefits, professional fees and other similar normal expenses for the operation of their business.”
The main condition that will allow the assets to be unfrozen is that Binance cannot, under any circumstances, make payments or transfer any assets to any Binance entity or person or entity acting on behalf of or for Binance.
The order also states that Binance CEO Changpeng Zhao, in particular, cannot have access to any assets of BAM Trading or Binance. US.
Following the SEC lawsuit against Binance and Zhao, the commission filed an emergency court request to freeze BAM Trading’s assets.
Related: “All SEC claims are untrue” – Binance. US rejects freeze request
In response, BAM Trading filed an objection argument, which essentially stated that the company and its lawyers believe that the underlying reason for the SEC’s request for a freeze does not meet the burden of proof required by the court.
At the time of this article’s publication, the court has not yet approved the proposed consent decision. Apparently, there was a disagreement between the SEC and Binance over the details, and the court requested further clarification.
Judge Amy Berman Jackson, according to the filing seen by Cointelegraph on PACER, asked both parties to weigh in by 1 pm EST on June 13 any changes the court needs to consider before it decides on the proposed consent order.