Binance.US, a prominent cryptocurrency company, has successfully struck an agreement with the United States Securities and Exchange Commission (SEC) to continue its operations despite facing fraud charges from the commission.
Initially, the SEC filed for a court order on June 6, seeking a temporary restraining order on Binance.US operations and a freeze on all assets held on its trading platform.
However, Judge Amy Jackson refused to grant the order and instead encouraged both parties to negotiate a solution that would safeguard consumer assets without necessitating the closure of the exchange.
Recently, the SEC announced in a press release that an understanding had been reached, with court approval obtained for the agreement. However, the lawsuit itself remains ongoing.
On June 5, the SEC leveled 13 charges against Binance.US, its global partner Binance, and their founder, Changpeng Zhao, accusing them of engaging in deceptive practices.
These charges included operating unregistered exchanges, broker-dealers, and clearing agencies, misrepresenting trading controls and oversight on the Binance.US platform, as well as the unregistered offer and sale of securities. Despite the agreement with the SEC, the charges brought against the parties are still pending in court.
As per the SEC’s announcement, all parties involved have agreed to repatriate assets held for the benefit of Binance.US customers to the United States.
Additionally, Binance.US is mandated to maintain customer assets within the country until a definitive court order is issued.
The exchange is restricted from using the funds except for ordinary business expenses, which will be overseen by the SEC. Moreover, Binance.US is strictly prohibited from granting access to customer funds to its co-defendants, Binance and Changpeng Zhao.