Binance has reached an agreement with the US Securities and Exchange Commission (SEC) after the regulator attempted to freeze the assets of the company’s US arm.
In a new lawsuit, the SEC has approved a proposal that would allow Binance.US to retain exclusive ownership of its clients’ assets.
“It is further ordered that on or before the date on which the Court issues this Consent Order, Stipulating Defendants, through their officers and employees or an unaffiliated third party custodian in the United States, shall procure, and each confirm to registered counsel for the SEC, that BAM Trading and BAM Management obtain and maintain exclusive possession, custody and control of all client assets.”
Changpeng Zhao, the CEO of Binance, say that the problem has been resolved in mutual consultation with the supervisor.
“While we maintain that the SEC’s request for emergency assistance was wholly unfounded, we are pleased that the disagreement over this request has been resolved on mutually acceptable terms. User funds have always been and will always be safe on all Binance affiliated platforms.”
According to a Reuters report, the agreement between the parties is still subject to approval by the judge presiding over the case.
Earlier this month, the SEC sued the crypto exchange on several allegations of violating securities laws and other allegations.
The regulator also attempted to freeze the company’s assets, which Binance.US said would effectively bankrupt the company as it would no longer be able to fund its operations.
At the time, Binance’s lawyers said the SEC’s application to freeze the company’s assets did not qualify as an “emergency” as the regulator was unable to prove that Binance had mishandled or misused its clients’ funds.
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