Binance.US and the US Securities and Exchange Commission reached an agreement that avoids a total asset freeze at the cryptocurrency trading platform while the regulator’s suit against it proceeds.
Under the pact announced Saturday, Binance Holdings, BAM Management US, BAM Trading Services and founder Changpeng “CZ” Zhao will repatriate Binance.US customer assets. Binance.US is prohibited from spending corporate assets other than to cover the costs of running its business and US customers are permitted to redeem from the platform, according to the order filed by US judge Amy Berman Jackson in Washington federal court.
The decision by the judge finalized an agreement struck between the parties to protect billions of dollars in customer funds without shutting the exchange down. The SEC had originally sought a total asset freeze at Binance.US, the trading platform owned by Binance Holdings Ltd. co-founder Zhao. Binance.US, which is fighting the SEC’s suit and says customer assets are safe, argued that blocking the flow of all funds would cripple its business and hurt customers.
Read the full story on Bloomberg here.