Binance, Binance.US, and the US Securities and Exchange Commission (SEC) reportedly reached an agreement on Friday, June 16, to temporarily limit access to client funds to only Binance.US employees.
The proposed agreement, reportedly pending approval by an oversight federal judge, outlines measures Binance.US has taken to prevent Binance officials from accessing wallet private keys, hardware wallets or root access to Binance.US' Amazon Web Services tools. Additionally , the US- based cryptocurrency trading platform will disclose comprehensive information on business expenses, including estimated costs, in the coming weeks. The agreement is a direct response to a motion filed by the SEC to freeze the entire assets of Binance. US amid ongoing legal proceeding ings. The regulator has expressed concern that if the temporary restraining order is not granted, there may be a risk that funds will be transferred overseas or that vital records will be deliberately destroyed. However, legal representatives of Binance.US strongly opposed this idea,arguing that imposing a blanket freeze on all assets would essentially be tantamount to imposing an overly severe “death sentence” on the company.
At a hearing earlier this week, US District Judge Amy Berman-Jackson suggested that it would be better for the parties involved to reach an agreement on the proposed rules than to rely on the courts to create a restraining order. The judge stressed that the two -week duration of the temporary restraining order may not be long enough for a full hearing. This is especially true considering the sheer number of exhibits submitted, totaling over 4,000 pages. The proposed agreement includes other provisions, such as the creation of new c Krypton wallets by Binance.US, which will not be accessible to employees of other Binance entities. Additionally, Binance.US committed to provide more information to the SEC and agreed to an expedited discovery timeline. Notably, US customers will retain the ability to withdraw funds during this period.
If accepted, the proposed agreement would partially address the SEC's concerns while the broader litigation progresses. The SEC recently sued Binance and Binance.US for trading unregistered securities and for allegedly mixing funds and bad conduct. However, the proposed agree ment does not include broader litigation .
