U.S Federal Court Rejects SEC’s Plea to Freeze Binance US Assets

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The SEC's request to freeze Binance US's money and other assets was denied by a federal court in the U.S. according to US District Judge Amy Berman Jackson's statement on Tuesday, June 13th. The two parties have agreed to negotiate on a compromise to avoid a comprehensive asset freeze.

Binance can now take a deep breath. The SEC’s request to freeze the exchange’s money and other assets on the Binance.US trading platform was denied by a federal court in the U.S. This comes only one day after Binance asked the court to reject a similar plan from the SEC.

Binance.US and the Securities and Exchange Commission, according to US District Judge Amy Berman Jackson’s statement on Tuesday, June 13th, have agreed to negotiate on a compromise to avoid a comprehensive asset freeze. According to Jackson, the two parties “aren’t that far apart” on how to keep clients’ billions of dollars safe while the litigation is pending without having to close the exchange.

Positive Start

“The nitty-gritty of it is better handled by you than by me”, Jackson said at yesterday’s session. The Judge emphasized that she would not have to decide on the SEC’s request to implement a temporary restraining order if the parties were able to come to an agreement.

Moreover, the SEC quickly moved to have Binance US money frozen after filing an action against the exchange for allegedly breaking U.S. federal securities laws. The federal securities agency stated that the restraining order was necessary to avoid the waste of assets. However, the relief is much welcomed by the whole crypto community, as it would have made a huge dent on the market.

Binance US Fighting for Survival

Binance US, also however vehemently resisted the SEC’s demand, arguing that restricting the flow of money would destroy the company and injure its consumers in the long run. “We are not willing to accept the death penalty eight days into our case,” Binance US attorneys informed the judge.

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Moreover, Binance stated further that the exchange has to have sufficient assets on hand to meet standard company expenditures including wages, rentals, vendor payments, and software licencing fees. The counsel for binance.US expressed concern about a potential asset freeze that banks may misinterpret.

Binance proposed a solution that would require US users’ crypto being transferred to new wallets using different private keys. Only Binance US employees in the United States would have access to these wallets.

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Siddharth Chaturvedi