Binance, SEC deal to keep US client assets in country

New York

Binance and the US Securities and Exchange Commission reached an agreement to avoid a full asset freeze on the platform in the US and keep customer assets in the US, after a US district judge signed a consent order filed on Saturday.

The agreement was reached on a broad, ongoing basis case The filing by the SEC could take months or years to resolve, the company alleges Conducts illegal securities exchange.

The defendants, including CEO Changpeng Zhao, agreed to return assets held for the benefit of American clients. The agreement ensures that those assets are protected and remain in the United States to prevent them from going offshore, according to a consent order.

“Through the 13 indictments, we allege that Zhao and the finance companies engaged in an extensive network of conflicts of interest, non-disclosure and unaccountable evasion of the law,” SEC Chairman Gary Gensler said. Report About the case in June.

The agreement also states that Finance Holdings officials, including Zhao, cannot control these assets. Assets and funds cannot be expressly transferred to them, as ordered by the treaty and remain under domestic control.

The order prohibits the defendants from expending corporate assets in the “ordinary course of business” and They have to supervise the cost regulating agency, The SEC said Saturday.

The The SEC said on Saturday it had obtained emergency relief to protect US client assets.

“Since Changpeng Zhao and Finance Platforms have been controlling the assets of customers, they have been able to combine customer assets or divert customer assets as they see fit, and as we allege, these restrictions are necessary to protect investor assets,” said Gurbir S. Grewal, director of the SEC’s enforcement division, confirms that US customers can still withdraw their assets.

Commission is Cracking down on the world’s biggest crypto companies, filing a serious complaint against Coinbase in early June as well. The industry has long been scrutinized for a lack of regulatory oversight.

The SEC asked a federal court to issue a temporary restraining order to freeze the financier’s U.S. assets in early June, Reuters reported. reported.

When reached for comment, Binance.US referred CNN to a Twitter thread on Sunday in which the company said it looked forward to continuing to defend itself in court.

“This fight has damaged our business and reputation, but not our fighting spirit or determination to defend ourselves against unwarranted accusations and ‘regulatory by enforcement’ tactics absent in our justice system,” the tweet said. saidAdding an earlier asset freeze claim would have effectively shut down its business.