Binance US reaches agreement with SEC to avoid full asset freeze

强哥说趋势 · 2023-06-18T05:46:16.000Z

The judge's ruling finalizes an agreement between the two parties to protect billions of dollars in customer funds without shutting down the exchange, according to the agreement announced Saturday. The SEC initially sought to freeze all of Binance’s assets, arguing that blocking all financial flows would cripple its business and harm customer interests. In a lawsuit on June 5, the U.S. Securities and Exchange Commission accused Binance and Changpeng Zhao of improperly handling customer funds, misleading investors and regulators, and violating securities rules. It also requires the repatriation of cryptocurrencies belonging to U.S. customers — a request that would only be made if there is a risk that the assets could be lost or hidden.

The judge’s ruling finalized an agreement reached between the two parties to protect billions of dollars in customer funds without shutting down the exchange, according to the agreement announced Saturday. The SEC initially sought to freeze all of Binance’s assets, hoping that stopping all money flows would cripple its business and harm customer interests.
In its June 5 lawsuit, the SEC accused Binance and Zhao Changpeng of mishandling customer funds, misleading investors and regulators, and violating securities rules. It also sought the repatriation of cryptocurrency belonging to U.S. customers — a request that would only be made if there is a risk that assets could be lost or hidden.
Among the allegations in the lawsuit, the SEC claims that Binance improperly transferred billions of dollars of customer funds to a bank account of an entity controlled by Zhao Changpeng. According to the indictment, the funds were transferred to third parties and then appeared to be used to buy and sell cryptocurrencies. #BTC #ETH 