Binance US and the US Securities and Exchange Commission (SEC) have reached an agreement that prevents a total asset freeze on the cryptocurrency trading platform, while the regulator’s lawsuit against the company continues.
The agreement announced today, Saturday, provides that Binance Holdings, BAM Management US, BAM Trading Services and founder and CEO Chapeng Zhao, aka “CZ”, will repatriate client assets of Binance US, which is prohibited from spending corporate assets beyond covering the cost of running the business.
Also, customers in the US are allowed to cash out from the platform, as ordered by US Judge Amy Berman Jackson in federal court in Washington, D.C., Bloomberg reports.
The ruling finalized an agreement struck between the parties to protect billions of dollars of customer funds without shutting down the exchange.
The SEC had originally sought a total asset freeze on Binance US, the platform owned by Zhao, co-founder of Binance Holdings Ltd. Binance US argued that customer assets are safe and that preventing the flow of all funds would cripple the business and harm customers.
“Users’ funds have been and will always be safe on all Binance platforms,” the spokesperson said, welcoming the deal.
In its June 5 lawsuit, the SEC accused Binance and Zhao of mismanagement, misleading investors and regulators, and violating securities rules.
It also asked for the repatriation of cryptocurrencies belonging to US customers – a request that is only made when there is a risk of loss or concealment of assets.
The assets of Binance US clients exceed $2.2 billion.
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