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US Judge Amy Berman Jackson approved the agreement between Binance on June 17th. US, Binance, and the Securities and Exchange Commission (SEC) by overturning a previous temporary restraining order (TRO) that would freeze all of Binance’s assets. US.
Judge Jackson said on June 14 that she would prefer that the parties reach an agreement on their own rather than her decision. It is reported that the parties reached an agreement on June 16.
“We are pleased to inform you that the court did not grant the SEC’s request for a VFR and an asset freeze on our platform, which was clearly unfounded both in terms of facts and law,” Binance said in a statement. US on Twitter.
According to the approved agreement, only Binance employees. US will have access to client funds until the litigation is resolved. US customers will continue to be able to withdraw funds during this period.
We want to provide an update on the current battle https://t.co/AZwoBOh0gq finds itself in with the SEC. We are pleased to inform you that the Court did not grant the SEC’s request for a TRO and freeze of assets on our platform which was clearly unjustified by both the facts and…
— Binance.US (@BinanceUS) June 17, 2023
The deal between the cryptocurrency exchange and the US regulator also prevents any access by Binance global officials to wallet private keys, hardware wallets, or root access to Binance tools. US Amazon Web Services.
“The Securities and Exchange Company has never presented any evidence of misuse of client assets. In fact, lawyers for the Securities and Exchange Commission admitted in court earlier this week when the judge asked that they had no evidence that anything like that had taken place. ,” wrote Binance. US regarding allegations of mismanagement of funds.
Commenting on the case on Twitter, former head of the SEC’s Office of Online Enforcement John Reed Stark noted that the agreement includes a “particularly interesting provision” for the repatriation of certain assets to the US.
“Defendants must repatriate to the United States, hand over to BAM Trading, and certify that BAM Trading maintains, holds, and controls in the United States all fiat and cryptocurrency assets that are deposited, held, traded, or accumulated by customers […]”, the agreement says.
In addition, the deal claims that Binance. The US must take immediate action to provide “verified written records” of invoices associated with BAM facilities valued in excess of $1,000.
The SEC has filed an emergency motion for a temporary restraining order against Binance. US on June 6 after accusing Binance CEO Changpeng “CZ” Zhao of accessing Binance customer funds in a lawsuit. US. The regulator alleged that Zhao transferred $12 billion worth of funds to Binance through an entity he controls called Merit Peak.
Ahead of Binance Restraining Order Hearing. The US and Zhao submitted a joint memorandum denying that the funds were ever misused. According to them, the SEC has not been able to detect a single case of misuse of Binance customer funds. US.