Binance.US Reaches Agreement with SEC to Move Client Funds Back Onshore
Binance and Binance.US are currently facing a lawsuit from the Securities and Exchange Commission. To this end, SEC filed for a temporary restraining order against Binance.US citing calling for the limitation of its services in the territory.
However, Binance.US has currently reached an agreement with SEC officials by allowing the employees of the firm to access consumer funds using keys.
The funds in question belong to the active account holders and traders on the Binance exchange. The understanding between Binance.US and SEC officials has granted permission for Binance employees to access the crypto holdings by releasing the private keys.
The event is said to take place on Friday and will remain active for a short duration. Meanwhile, the restraining order application released by SEC is still awaiting a signed approval from a federal judge.
Binance.US is currently making an active effort to make sure that the firm retains control of the private keys to access Binance Holdings. Binance Holdings represent the international crypto reserves distributed among various wallets, AWS tools, and hardware wallet root access.
It is worth mentioning that US officials are currently attempting to freeze all assets of Binance.US while the lawsuit is underway. In addition to dealing with the lawsuit, and working on retaining control of its assets, Binance is also working on preparing a detailed cost estimate containing a business expense account and other necessary information for court proceedings.
On the other hand, SEC officials are postulating that Binance may move the funds to offshore accounts and records in the absence of a temporary restraining order TRO. However, the defense team of Binance.US has countered the declaration by claiming that freezing the assets of the firm can lead to permanent closure for the exchange.
The hearing concerning the matter is tried at the District Court of Columbia under the supervision of Judge Amy Berman Jackson.
Judge Jackson Directed SEC and Binance Officials to Reach an Agreement
Presiding Judge Jackson on the case has maintained that a TRO will only grant a two-week halt of operations which is insufficient for the preparation of the lawsuit. She explained that thus far more than 4000 pages worth of evidence have been filed.
In light of the legal limitations, the judge has directed SEC and Binance to come to an agreement concerning the TRO. Another important proposition submitted by SEC requires Binance.US to create new digital wallet addresses that are inaccessible to its employees.
Binance.US will then proceed to offer additional information to SEC investigators concerning the proceedings of the case. Meanwhile, Binance.US is also asked to agree to a discovery period spanning over a shorter duration.
It is worth noting that at present Binance and Binance.US are facing various charges from the SEC including commingling funds and dealing in unregistered securities.
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