Legal Victory: Binance.US Assets Unfrozen by Judge

Legal Victory: Binance.US Assets Unfrozen by Judge
On June 17, United States Judge Amy Berman Jackson gave her approval to an agreement reached between Binance.US, Binance, and the Securities and Exchange Commission (SEC). This agreement effectively dismissed a temporary restraining order (TRO) that had been previously imposed, which would have frozen all assets held by Binance.US.

Judge Jackson had expressed her preference on June 14 for the involved parties to come to their own agreement rather than relying on her ruling. It has been reported that the parties involved were able to reach an agreement on June 16.

Binance.US took to Twitter to express their satisfaction with the outcome, stating, "We are pleased to inform you that the Court did not grant the SEC’s request for a TRO and freeze of assets on our platform which was clearly unjustified by both the facts and the law."

According to the approved agreement, only Binance.US employees will have access to client funds until the litigation is fully resolved. However, customers based in the United States will still be able to withdraw funds during this period.

The agreement between the cryptocurrency exchange and the U.S. regulatory body also includes provisions to prevent any access by Binance global officials to private keys of wallets, hardware wallets, or root access to Binance.US's Amazon Web Services tools.

Binance.US addressed the allegations of funds mismanagement, stating that the SEC had not presented any evidence to support their claims. In fact, during court proceedings, SEC lawyers admitted that they had no evidence suggesting any misuse of customer assets.

John Reed Stark, the former chief of the SEC's Office of Internet Enforcement, made a notable observation on Twitter regarding the agreement. He highlighted a provision related to the repatriation of specific assets to the United States.

The agreement states that defendants are required to repatriate and transfer all fiat currency and crypto assets deposited, held, traded, or accrued by customers to BAM Trading, confirming that BAM Trading maintains possession, custody, and control of these assets within the United States.

Furthermore, the deal stipulates that Binance.US must promptly take action to ensure a verified written accounting of accounts associated with BAM entities that have a value exceeding $1,000.

Previous Next

This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.