Only Binance.US staff will have access to client funds up until the case is finished, per the authorized agreement.
On June 17th, an agreement between Binance.US, Binance, and the Securities and Exchange Commission (SEC) was approved by United States Judge Amy Berman Jackson. A prior temporary restraining order (TRO) that sought to freeze all of Binance.US’s assets has been dismissed as a result of this arrangement.
On June 14, Judge Jackson stated that she would prefer that the parties come to an arrangement without her issuing a judgement. The parties concerned apparently came to an arrangement on June 16 after that.
Binance.US tweeted about the court’s decision not to grant the SEC’s request for a TRO and asset freeze, which the exchange believed was unlawful given the circumstances and the legislation.
Only staff of Binance.US will have access to client funds up until the dispute is finished, per the authorized agreement. Customers with addresses in the United States can still withdraw money during this time, though.
Additionally, the agreement between the cryptocurrency exchange and the SEC guarantees that no global authorities of Binance will have access to hardware wallets, private keys for wallets, or root access to Binance.tools from Amazon Web Services in the US.
In response to concerns of money mismanagement, Binance.US said the SEC has not provided any supporting documentation. The exchange made a point of highlighting the SEC lawyers’ own admission in court that there was no evidence to support any improper use of customer assets.
The issue was discussed on Twitter by John Reed Stark, the former director of the SEC’s Office of Internet Enforcement. He called attention to a “particularly interesting provision” in the deal about the return of certain assets to the United States.
Judge Jackson’s approval of this deal marks a significant move in the court case involving Binance.US, Binance, and the SEC. Clarity and a definition of the duties and obligations of the parties engaged during the litigation process are provided by the dismissal of the TRO and the development of terms for asset access and management.