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Binance. The US and the US Securities and Exchange Commission (SEC) have agreed to an agreement that will allow the exchange to avoid freezing all of its assets.
On June 14, Bloomberg reported that U.S. District Judge Amy Berman Jackson referred both organizations to a Justice of the Peace to work out a compromise that could protect client funds without having to close the exchange.
“A total shutdown will have serious consequences not only for the company, but for the digital asset markets as a whole,” Jackson said at a June 13 hearing.
Judge Jackson noted that she will not make a final decision on the SEC’s motion for a temporary restraining order until both parties work through the situation with a magistrate.
An update on the negotiations with the justice of the peace is scheduled for the end of the day on June 15th.
In addition, she noted that the SEC and Binance. The US seemed “not that far apart” when it came to reaching an agreement on the issue.
Before Judge Jackson delivered her ruling at the hearing, former SEC attorney John Reed Stark told his 20,000 Twitter followers that there was “a big conflict between what each side” wanted to get out of the hearing.
SEC/Binance Newsflash: Dueling Consent Orders (Read Them Now)
The SEC and the Binance defendants have each submitted draft orders of what each party wants the Judge to order in the SEC/Binance Emergency Asset Freeze Enforcement Action.
There is obviously a lot of conflict… pic.twitter.com/UWjXSgL5lR
— John Reed Stark (@JohnReedStark) June 13, 2023
“This does not mean that the judge cannot reach a compromise and find common ground,” Stark explained.
Related: SEC Can’t Find Binance CEO Changpeng Zhao, Asks Court for ‘Alternative Service’
The SEC has filed an emergency motion for a temporary restraining order against Binance. US on June 6 after accusing Binance CEO Changpeng Zhao (CZ) of being able to access Binance customer funds. US.
The regulator alleged that Zhao transferred $12 billion worth of funds to Binance through an entity he controls called Merit Peak.
In a joint memorandum dated June 12, submitted ahead of the restraining order hearing, and Binance. US, and Zhao denied allegations that the funds were ever misused. They accused the SEC of “failing to identify a single case” where Binance customer funds. US has ever been misused.
“Indeed, there is no “emergency” here at all, except for the one made by the SEC for its own purposes.”