SEC and Binance reach a compromise over US asset freeze

SEC and Binance reach a compromise over US asset freeze

Binance.US will have to move all assets based in the U.S. to a new wallet, but it can still pay its bills if a consent order is approved.

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Recently, the United States Securities and Exchange Commission and BAM Trading’s (Binance U.S. arm), submitted for a request of a consent order to ease some restrictions from an earlier SEC request that the company’s assets be frozen.

The SEC would be more assured by the proposed new consent order and BAM Trading could meet its financial obligations and pay payroll. According to the document:

BAM Trading, BAM Management, or both, may continue to pay for goods and services purchased, salaries of BAM Trading, BAM Management, including any pre-existing benefits and professional fees. They can also make payments on other expenses of a similar nature for their business.

Binance cannot, under any circumstances, pay or transfer assets to any Binance entity, individual, or entity acting for Binance.

The order also states that Binance’s CEO Changpeng Zhao cannot have access to BAM Trading assets or Binance.US.

After SEC’s lawsuit against Binance, Zhao and the commission , the commission has filed a request for emergency court order to freeze BAM Trading assets.

Related: Binance.US rejects the SEC motion to freeze funds

BAM Trading filed a opposition argument in response. The company and its attorneys believed that the SEC’s rationale behind the request for the freeze did not meet the burden required by the courts.

As of the publication of this article, the court had not yet approved the consent order proposal. The SEC and Binance appear to disagree on the details. The court has requested further clarification.


Screenshot of documents in Binance case. Source: PACER

According to a document Cointelegraph found on the Public Access to Court Electronic Records site, Judge Amy Berman Jackson requested that both parties submit their comments by 1:00pm Eastern Time, on Wednesday, June 13, with any possible changes the court might want to consider before making a decision about the proposed consent order.