The US SEC and Binance have reached a deal to let the latter run its operations in the country while the former continues investigating its claims.
As mediated by the Court, SEC forces Binance.US to send funds into a special digital repository and make them inaccessible to the Binance parent company or its CEO, CZ. This would ensure the company does not pull the rug one day while SEC investigates the fraud charges it accused the exchange of.
Securing Funds in a Special Vault
The world’s largest cryptocurrency exchange by volume, Binance, is facing a slew of charges in the US on various counts pushed by the SEC and the Commodity and Futures Commission. While the latter is ongoing, the former’s accusation is partially settled this week, with Binance taking the hit.
To the unknown, SEC sued Binance.US (the US wing of Binance exchange) for several fraudulent transactions – made by the parent company and its CEO on several occasions. And before this turned out to be another crypto scam, the SEC charged Binance.US earlier this month and even geared to freeze the company’s US accounts.
But with Binance lawyers arguing that it would put the company out of business in the US, the court has pushed both parties for a mutual settlement. And late Friday, the Court overseeing this matter announced the parties had reached a compromise – with Binance.US forced to transfer all its funds into a special digital repository – and cutting its access to the parent company and its CEO.
This would ensure the company’s assets be used “solely to make payments for expenses or to satisfy obligations incurred in the ordinary course of business.” This aside, the SEC continues to investigate its claims against the exchange. Talking about this deal, Binance on Saturday said, “Although we maintain that the S.E.C.’s request for emergency relief was entirely unwarranted, we are pleased that the disagreement over this request was resolved on mutually acceptable terms.”