Reading 2 minutes Views 2 Published Updated
It is reported that Binance, Binance. The US and the Securities and Exchange Commission (SEC) unveiled an agreement late Friday, June 16, temporarily limiting access to client funds to Binance employees only. US.
According to reports, the proposed agreement, pending the approval of a federal judge, sets out the measures for Binance. US to prevent any access by Binance Holdings officials to wallet private keys, hardware wallets, or root access to Binance tools. US Amazon Web Services. In addition, in the coming weeks, the US-based cryptocurrency trading platform will disclose comprehensive information on business costs, including estimated costs.
The proposed agreement was a direct response to the SEC’s motion to freeze all of Binance’s assets. US in ongoing litigation related to securities-related allegations. The regulator has expressed concern that without a TPO provided, there could be a risk of funds going offshore or deliberate destruction of important documents.
However, the legal representatives of Binance. The US strongly opposed the idea, arguing that imposing a total freeze on all assets would, in fact, be tantamount to applying an overly harsh “death penalty” to the company.
During a hearing earlier this week, Judge Amy Berman Jackson, presiding judge of the D.C. District Court, told stakeholders that it would be more beneficial for them to reach an agreement on the proposed provision than to rely on its wording. restraining order. The judge emphasized that the temporary restraining order has a limited time limit of two weeks, which may not be sufficient for a full and thorough hearing. This is especially true given the considerable amount of material already submitted, amounting to more than 4,000 pages.
Related: Binance Under Investigation in France Since February 2022: Report
The proposed agreement includes additional provisions such as the creation of Binance. US of new cryptocurrency wallets that will not be available to employees of the global exchange. Also, Binance. US is committed to providing the SEC with additional information and agreeing to an accelerated discovery schedule. Notably, US customers will continue to be able to withdraw funds during this period.
If passed, the proposed agreement would partially address the SEC’s concerns while the broader litigation continues. The SEC recently sued Binance and Binance. US for trading in unregistered securities and alleged miscegenation and unfair practices. However, the proposed agreement does not cover the broader claim.