Binance.US And SEC Reach Agreement On Access To US Customers’ Money

Key Points:

• After many negotiations, Binance.US and the SEC have agreed to remove the option of freezing Binance.US assets.
• An agreement was reached to ensure that only Binance.US employees can access client funds.
• The US branch of the world’s largest cryptocurrency exchange platform will share details on business expenses, including cost estimates, in the coming weeks.

According to Coindesk, Binance, Binance.US and the Securities and Exchange Commission (SEC) have announced an agreement to ensure that only US-based employees can access customer funds.

Under the proposed agreement, Binance.US will ensure that no employee of Binance Holdings (referring to Binance exchange) has access to the private keys for critical wallets, hardware wallets, or other access rights – administrative access to Binance.US Amazon Web Services tools. Furthermore, the US crypto exchange platform will share details on business expenses, including cost estimates, in the coming weeks.

This proposed settlement comes in response to the SEC’s proposal to freeze the assets of Binance.US while pursuing the exchange over securities-related allegations. The regulator said it was concerned that funds could be moved overseas or that records would be destroyed if a temporary containment order (TRO) was not issued. Lawyers for Binance.US protested, arguing that freezing all of their assets would be tantamount to a “death sentence.”

On Thursday, the two sides released a report saying the parties worked hard to reach an agreement. Some progress has been made, and the parties are continuing to negotiate a proposed deal to submit to the court.

Earlier on Tuesday, Judge Amy B. Jackson set a deadline for the SEC and Binance to compromise on the SEC’s request to freeze all assets of Binance.US, BAM Management, and BAM Trading.

Other terms in the proposed agreement would allow Binance.US to create a new crypto wallet that employees of the global exchange do not have access to, provide additional information to the SEC, and agree to a schedule express discovery. Customers in the US will still be allowed to withdraw during this time.

The proposed settlement, if accepted, would address some of the SEC’s stated concerns as the broader lawsuit it filed will make its way through the justice system. The SEC sued Binance and its US affiliate last week for allegedly providing and trading in unregistered securities and alleging mass mixing of funds and poor practices. The proposed settlement does not delve into the broader litigation.

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