In a recent hearing, the Securities and Exchange Commission (SEC) and Binance.US have found common ground regarding the protection of client assets, which will therefore not lead to a freezing of these. However, the situation of Binance.US remains in abeyance pending further clarification regarding the rest of the charges against it.
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Binance.US and the SEC find common ground
Just a week ago, Gary Gensler’s Securities and Exchange Commission (SEC) filed a request to temporarily freeze the assets of Binance.US, the American branch of giant Binance.
Fortunately, during the hearing held yesterday Tuesday, June 13 in the presence of both parties, the judge showed some common sense, arguing that the SEC and Binance.US had “ not a not so distant vision » regarding the best way to protect client assets.
🔴 LIVE – Follow the SEC’s anti-cryptocurrency crusade in real time
The SEC’s initial request followed its June 5 complaint alleging that Binance.US had failed in some of its obligations, including registration as a broker, exchange and clearinghouse. She accused him and still accuses him of having mixed the funds of his clients with hisor even with those of Binance, while the 2 platforms are supposed to be distinct from an operational point of view.
During the hearing, representatives of Binance.US made it known that a potential freezing of the platform’s assets would purely and simply sign the death of the latterone of the lawyers adding on this subject:
“We are not ready to accept the death penalty 8 days after the start of our case. »
What the judge himself confirmedgoing so far as to talk about the impact this could have for the entire cryptocurrency market:
“The complete shutdown of Binance would have significant consequences not only for the company, but also for the digital asset markets in general. »
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A story far from over
Although we can welcome this initiative of the American justice, which would have proved catastrophic in the event of a contrary decision, the American branch of Binance is far from being out of the woods.
Indeed, during the hearing, an SEC representative requested that the platform provide accounting of its business expenses and professional fees in order to accurately assess its operational costs. The platform must provide a list compiling all of its expenses today, Wednesday, June 14.
For its part, defendant Binance.US requested permission to continue paying its employees and supporting its operational costs. In the interests of transparency, she also asked that any transfer of funds to an ancillary entity of Binance is notified and approved by a judge.
According to Bloomberg, the memorandum describes Changpeng Zhao, CEO of Binance, as “ a foreign national who has openly declared that he is not subject to the jurisdiction of this court “.
👉 Related – Binance Accused of Selling BTC to Maintain BNB Price
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Source: Bloomberg
Image source: Web Summit via Flickr, CC by 2.0
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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