SEC In Talks To Avoid Freezing All Binance US Assets: Report

Avoid all asset freeze

Binance US, the U.S. arm of major cryptocurrency exchange Binance, has reached an agreement with the U.S. Securities and Exchange Commission (SEC) not to freeze all of its assets. 14, Bloomberg reported.

U.S. District Court Judge Amy Berman Jackson ruled Wednesday that there appears to be no big divide between defendants and plaintiffs on how to protect billions of dollars in customer assets. He may not have to shut down the exchange while the trial proceeds, he ruled. Judge Jackson has referred it to a magistrate to decide if a final agreement can be reached.

Last week, the SEC sued Binance US, Binance itself and its CEO Changpeng Zhao. He has since filed an urgent petition with the District Court to freeze Binance US assets in order to ensure the safety of customer assets. A public hearing was scheduled to be held on the 13th regarding the asset freeze.

Binance US also submitted documents to the district court ahead of the hearing following the asset freeze motion. In the filing, the company argues that the SEC’s request to freeze its assets is “unnecessary and unreasonable.” He argued that the SEC’s demands would effectively end Binance.US’ business.

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The company and the SEC will continue to discuss the asset freeze.

Storage of customer assets

The SEC has filed a total of 13 charges against Binance and others, including providing trading services for unregistered securities. The current agreement only concerns the freezing of assets.

In its first complaint, the SEC alleges that the defendants knowingly evaded U.S. regulatory oversight and put U.S. investors’ assets at risk. He said that the defendant was free to transfer the investor’s virtual currency and fiat currency, and that he actually did.

For example, it was pointed out that the assets of US investors on each platform of Binance were mixed with the account of a company called “Merit Peak Limited” managed by Mr. CZ through accounts owned and managed by Mr. CZ and Binance itself. are doing.

Merit Peak Limited is a British Virgin Islands cryptocurrency investment firm, according to the SEC complaint. The SEC also sought to remit all fiat and cryptocurrencies held by Binance US or traded by its users to the United States.

Binance US, on the other hand, claims that it properly segregates customer assets.

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