Binance and SEC Reach Settlement Pending Court Approval
Summary: A settlement between the SEC and Binance and its U.S. subsidiary, Binance U.S., is awaiting federal court approval. Customers' money on the Binance.US crypto exchange will be accessible exclusively to authorized Binance U.S. staff members under the terms of the proposed agreement.
The largest cryptocurrency exchange, Binance, and its U.S. subsidiary, Binance U.S., have reached a settlement with the Securities and Exchange Commission (SEC), which is now pending federal court approval.
No Funds Access by Binance Global
Under the terms of the proposed agreement, only Binance U.S employees would be able to access customer funds on the Binance.US cryptocurrency exchange. These include hot wallet and cold wallet private keys, as well as hardware wallet and Binance private keys. Binance Global workers will not be able to access any US internal systems or controls.
A proposed settlement and consent order was filed on June 16 with the US District Court for the District of Columbia showing that the US SEC, as plaintiff, and Binance Holdings and Binance.US, as defendants, had reached an agreement.
No Binance Holdings personnel will have access to any Binance.US wallets. Binance.US will also present the US SEC with a full financial statement including firm expenditures and projected expenses in the coming weeks.
Awaiting Federal Court Approval
In addition, this comes after US District Judge Amy Berman Jackson recommended an out-of-court settlement between the SEC and Binance.US instead of asking her to impose a restraining order to freeze the assets of Binance’s US-based branch. The business claims that the restraining order is “unnecessary” and that an asset freeze might halt the exchange’s activities in the United States.
Surprisingly, the SEC toned down its worries about Binance’s control of its American subsidiary on June 13 to comply with the court’s order. It is up to the federal court to adopt the settlement and consent decree that both parties have agreed upon.
Crypto Market Turns Green
Post the settlement news, the crypto market recovered. Bitcoin and Ethereum values both rose by 4% to $26,610 and $1753 respectively. Also most altcoins are trading in green.
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