Binance, in collaboration with the US Securities and Exchange Commission (SEC), has reached an agreement to prevent a complete freeze of the platform’s assets in the United States and ensure that customer assets remain within the country. The agreement was approved by a US district judge after a consent order was filed on Saturday. This development comes amid an extensive lawsuit filed by the SEC, which accuses Binance of operating an illegal securities exchange. Resolving this lawsuit could potentially take several months or even years.
The assets are safe
As part of the agreement, the defendants, including CEO Changpeng Zhao, have agreed to repatriate assets held on behalf of US customers. The consent order ensures that these assets are safeguarded and remain within the United States, preventing their transfer offshore. Furthermore, Binance Holdings officials, including Zhao, will not have control over these assets, as stated in the agreement. The order explicitly prohibits the transfer of assets and funds to them, instead mandating that they remain under domestic control. The order also restricts the defendants from utilizing corporate assets for anything other than ordinary business operations. The SEC will have oversight over their expenses, as outlined in the agreement issued on Saturday.
The SEC emphasized the importance of securing emergency relief to protect the assets of US customers, given the allegations of control, commingling, and diversion of customer assets by Changpeng Zhao and Binance entities.
Cryptocurrencies “Wild West” period is at an end
This crackdown on Binance is part of the SEC’s broader scrutiny of major cryptocurrency enterprises. In early June, the commission filed a severe complaint against Coinbase. The cryptocurrency industry has long faced criticism for its lack of regulatory oversight. In early June, the SEC requested a federal court to issue a temporary restraining order freezing Binance’s assets in the United States.
