Binance reached an agreement with the US Securities and Exchange Commission (SEC) after the regulator attempted to freeze the US arm’s assets.
“FURTHER REQUIRED THAT ON OR BEFORE THE DATE THAT THE COURT ISSUES THIS CONSENT ORDER, THE DEFENDANTS, THROUGH THEIR OFFICIALS AND EMPLOYEES OR THE TRUSTEE OF ANY UNAFFILIATE THIRD PARTY WITHIN THE UNITED STATES, WILL REPRESENT AND CONFIRM TO THE ATTORNEY OF RECORD FOR THE SEC, THAT BAM TRADING AND THE MANAGEMENT OF BAM solely acquires and maintains all client assets.”
Changpeng Zhao, CEO of Binance, He says That the problem with the regulator has been resolved on mutual terms.
“While we maintain that the SEC’s request for emergency relief was not entirely justified, we are pleased that the dispute over this request has been resolved on mutually acceptable terms. User funds have been and will always be safe and secure on all platforms affiliated with Binance.” “.
According to a Reuters report, the agreement between the two parties still needs to be made consent by the judge presiding over the case.
Earlier this month, the Securities and Exchange Commission (SEC) sued the cryptocurrency exchange on multiple allegations of breaches of securities laws and other charges.
The regulator also attempted to freeze the company’s assets, which Binance US said would effectively put the company out of business because it would not be able to fund any of its operations.
At the time, Binance’s lawyers said the SEC’s request to freeze the company’s assets was not considered an “emergency” because the regulatory agency could not prove that Binance mishandled or misused any of its customers’ funds.
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