- The agreement is in response to a TRO sought by the SEC against the exchange.
- Binance.US is facing a lawsuit from the regulator for alleged violation of federal laws.
Binance.US and the Securities and Exchange Commission (SEC) have agreed to a settlement that prevents the exchange from transferring customers’ funds to Binance Holdings, the global exchange. The agreement was in response to an application by the regulator for a total asset freeze against Binance.US.
According to the proposed agreement, which awaits the approval of the federal judge presiding over the matter, Binance.US has agreed to block Binance’s Holding’s officials from accessing its various wallets, hardware wallets, or root access to the exchange’s Amazon Web Services, says a report by Coindesk.
The SEC earlier raised concerns before Judge Amy Sauber Berman of the US District Court for the District of Columbia that Binance.US could move customer deposits offshore or destroy records pending a case against the exchange. SEC is suing Binance and Binance.US for, among other things, allegedly offering unregistered securities and commingling customer assets.
Averting Temporary Restraining Order
In a report shared with Bloomberg on Wednesday, Judge Berman said that Binance.US and the SEC were close to an agreement that could prevent a total asset freeze against the exchange. Part of the agreement, which has now been enforced, requires that Binance.US create a new crypto wallet that the officials of Binance Holdings (referring to the global exchange) have no access.
Meanwhile, Binance is facing investigations by the French authorities for allegedly failing to follow Know-Your-Customer (KYC) procedures, local publication Le Monde reported on Friday. The allegations of ‘aggravated money laundering’ is part of broader claims that the exchange promoted its services in France without formal registrations.
