Binance is gearing up to resume operations in the US after trial judge Amy Berman Jackson approved the SEC deal.
Binance gets court approval: will continue its US operations
The leading exchange received a new confirmation that it will continue to operate in the USA. The news came after trial judge Amy Berman Jackson ordered leave in the file filed on June 17. With this agreement, the defendant Binance agreed to return all the assets of Binance.US customers to their countries. The exchange made this proposal Tuesday, when the plaintiff filed a petition to freeze its assets.
On June 13, Judge Jackson denied the SEC’s request for a temporary restraining order to freeze Binance.US assets. Instead, he urged to set the terms for the exchange to continue operating while the litigation pending. At the time, Binance recommended that all assets belonging to Binance.US be transferred to new wallets only under the control of managers at the US-based subsidiary.
Limitations of the agreement
Still, the deal doesn’t completely save the exchange from the ongoing legal battle. According to the report, the case will continue as planned. This means that the deal is primarily limited to investor protection. The agreement also showed that the court intends to protect the industry. On June 13, Judge Jackson said that “completely shutting down [Binance.US] will have significant ramifications, not just for the company but for the cryptocurrency markets in general.”
The deal only allows BinanceUS employees to access client funds on the BinanceUS exchange. For the avoidance of doubt, Binance Global officials will not be allowed to access the private keys of all wallets, including cold and hot wallets, hardware and software.
https://twitter.com/BinanceUS/status/1670077275419869186
Binance announces supremacy
Meanwhile, on June 17, Binance was allowed to continue operating in the US. Thus, the SEC’s June 13 application to freeze BinanceUS assets was invalid. As reported by Kriptokoin.com, the leading exchange gladly announced the new decision:
We would like to provide an update on the current war with the SEC. We are pleased to inform you that the court did not accept the SEC’s request to freeze and subject assets on our platform to a temporary protection order, which was not clearly justified by both facts and law.
Background
In case you missed it, the SEC sued Binance and BinanceUS on June 5 for alleged violations of federal securities laws. This case came after three years of investigation. Similar charges were filed against Coinbase on June 6.
The development does not affect the case of Binance CEO Changpeng Zhao. CZ is accused of diverting client funds by concealing that he and the stock market shuffle billions of dollars in investor assets and send them to a third party he owns.
As reported, Binance and CZ have recruited some of the most famous legal representatives in the lawsuit against the SEC. Looking at the latest developments, they seem to have done a good job.
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