In a significant development, United States Judge Amy Berman Jackson has given her seal of approval to an agreement reached between Binance.US, the exchange, and the Securities and Exchange Commission (SEC) on June 17. This agreement effectively dismisses a previously imposed temporary restraining order (TRO) that sought to freeze all assets of Binance.US
Judge Jackson had expressed her preference for the involved parties to come to a mutual understanding rather than relying on her ruling. It appears that her wish has been fulfilled as the two sides reportedly reached an agreement on June 16.
Binance.US Granted Exclusive Access To Client Funds In SEC Agreement
According to the terms of the approved agreement, only Binance.US employees will have access to client funds while the ongoing litigation remains unresolved. However, U.S.-based customers will still retain the ability to withdraw their funds throughout this period, ensuring their financial autonomy.
The agreement further states that no access to hardware wallets, private keys for wallets, or root access to the exchange would be given to global authorities of Binance tools from Amazon Web Services in the US. This step strengthens client assets’ security and protects them from unauthorized access.
John Reed Stark, the former director of the SEC’s Office of Internet Enforcement, commented on the situation through Twitter and called attention to one especially intriguing clause in the deal. This clause emphasizes the return of specific assets to the United States, showing that compliance and accountability are the focus of a determined endeavor.
The accord also requires Binance.US to act right once to deliver a verified written accounting of accounts connected to BAM businesses worth more than $1,000. This action attempts to increase openness and provide more information about the financial activity associated with these businesses.
The SEC’s urgent request for a temporary restraining order against the exchange. On June 6, US was filed, alleging that Changpeng “CZ” Zhao, the exchange’s CEO, had gained unauthorized access to user funds through legal proceedings. Zhao was expressly accused by the regulator of moving $12 billion in funds from Binance through Merit Peak, a business he owned.
Zhao, as well as Binance.US, jointly sent a letter to the court opposing the interim restraining order and denying any financial irregularities. They claim there has never been a single case of consumer money being mishandled on Binance. The SEC has information regarding the US platform.
The ratification of the transaction is a significant move in the legal dispute between Binance.US, Binance, and the SEC. Since only the exchange now has access to client funds, efforts by US employees to ensure openness are now more heavily focused on finding a solution to the current dispute.