Binance, the world's largest cryptocurrency exchange, has reached an agreement with the U.S. Securities and Exchange Commission (SEC) to prevent the freezing of its assets in the United States. The SEC has obtained emergency relief, ensuring that Binance repatriates funds held on behalf of its American subsidiary's customers to the United States. The United States District Court has issued an order allowing Binance US users to withdraw their assets from the platform, and the SEC assures that the assets will remain protected within the country.
The agreement comes after reports of a mutual agreement between Binance and the SEC. Under the deal, only Binance US employees will have access to the funds belonging to U.S. customers. The SEC had initially sought a temporary restraining order on the assets of Binance's US subsidiary, citing concerns about their safety and accusing Binance of violating securities laws.
The recent court order imposes restrictions on Binance and its affiliated entities, requiring oversight of business expenses and prohibiting the use of corporate assets beyond normal operations. Binance is mandated to maintain U.S. customer assets within the country during the SEC litigation and facilitate customer withdrawals.
The agreement allows the protection of billions of dollars in customer funds without shutting down the exchange. Binance.US expressed satisfaction with the resolution and emphasized that customer funds have always been safe and secure. The SEC's lawsuit accuses Binance and its founder, Changpeng Zhao, of mishandling funds and violating securities rules, demanding the repatriation of cryptocurrencies belonging to U.S. customers.
