Binance.US and SEC Reach Agreement to Protect Customer Funds Amidst Legal Battle

Binance, Binance.US, and the Securities and Exchange Commission (SEC) have reached an agreement to safeguard customer funds and address concerns raised by the regulator. The deal, which is pending approval from a federal judge, outlines measures that Binance.US will take to prevent Binance Holdings officials from accessing private keys, hardware wallets, and root access to Binance.US’s Amazon Web Services tools. Additionally, the U.S.-based crypto trading platform has committed to sharing detailed information about its business expenses, including estimated costs.

According to Coindesk report, this agreement is a response to the SEC’s motion to freeze all of Binance.US’s assets while pursuing the exchange on securities-related charges. The SEC expressed concerns that funds could be moved offshore or records could be destroyed if a temporary restraining order (TRO) was not granted. However, Binance.US’s legal team argued against freezing all assets, likening it to a “death penalty” for the platform.

Judge Amy Berman Jackson, presiding over the case at the District Court for the District of Columbia, encouraged the parties to reach a stipulation rather than have her issue a restraining order. She highlighted that a TRO would only provide a two-week window for further hearings, which would be insufficient given the extensive exhibits already filed, totaling more than 4,000 pages.

Aside from restricting access to funds, the proposed agreement includes provisions such as creating new crypto wallets inaccessible to Binance Holdings employees, providing additional information to the SEC, and agreeing to an expedited discovery schedule. Notably, U.S.-based customers will still be able to withdraw funds from Binance.US during this period.

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