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Binance, SEC reach agreement to restrict US customer assets

Binance, SEC reach agreement to restrict US customer assets

The largest cryptocurrency exchange in the world, Binance, and Binance US have a deal with the U.S. Securities and Exchange Commission to guarantee that U.S. customer assets stay in the U.S.

The deal, which was revealed in court documents submitted late on Friday, still needs to be approved by the federal judge presiding over the dispute.

The SEC filed a lawsuit against Binance on June 5 and named Changpeng Zhao, the company’s CEO and founder, as well as Binance US’s operator.

The SEC said that Binance had inflated its trading volumes artificially, misappropriated client funds, failed to bar U.S. users from using its platform, and misled investors about its market surveillance procedures.

The lawsuit against major U.S. exchange Coinbr and the one the SEC filed the following day marked a dramatic escalation of U.S. regulators’ crackdown on the sector.

SEC said that the immediate relief order obtained for Binance US customers will protect their holdings and guarantee that they can keep withdrawing such assets.

The documents stated that Binance.US will also agree to an expedited discovery timeline, give extra information to the SEC, and create new cryptocurrency wallets without access for workers of the global exchange.

Following the SEC’s request for a court to order the freezing of its assets, the U.S. subsidiary of Binance last week stopped accepting dollar deposits and offered users until June 13 to withdraw their dollar monies.

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