Binance, SEC Have Come to a Compromise for US User Funds

1. The SEC and Binance legal teams have come to an unprecedented compromise.
2. The agreement may resolve the issue regarding SEC’s request to freeze Binance US user assets.
3. Judge Amy Berman Jackson of the D.C. District Court should now be reviewing the proposed agreement.

An unprecedented agreement has been made between the US Securities and Exchange Commission (SEC) and Binance, resulting in an asset freeze on Binance-related US assets pending litigation resolution. 

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Now, the agreement is subject to approval by Judge Amy Berman Jackson of the D.C. District Court. The court’s decision on the proposed agreement will determine Binance’s operations in the US and the outcome of the SEC dispute.

However, according to John Reed Stark, former SEC Chief of Office Enforcement, Judge Jackson has already approved the proposed compromise.

According to the proposed agreement, only employees of Binance.US will have access to customer funds during the litigation. Binance Holdings officials will be barred from accessing sensitive information. This measure aims to protect customer funds and ensure transparency.

Binance must “repatriate” specific assets to the United States, ensuring US-based personnel have complete control over them. The agreement prohibits providing customer assets to anyone except specified parties.

Binance.US must provide a verified accounting of accounts and transfers exceeding $1,000. It also requires sharing business expense information with the SEC.

The proposed order establishes an expedited discovery schedule to facilitate the legal process and allows preliminary rulings on token securities classification.

Additional provisions include creating new crypto wallets inaccessible to global employees, providing customer information to the SEC, and prohibiting document destruction.

The Binance legal defense team, composed of highly respected lawyers, may incur substantial fees, potentially reaching $1 million per day.