The US subsidiary of the cryptocurrency platform Binance reached a agreement with Securities and Exchange Commission (SEC) from that country, to avoid a total asset freezewithin the framework of the complaint that the regulatory authority filed last week for various crimes.
Under the agreement, Binance Holdings, BAM Management US, Bam Trading Services and the founder of Binance, Changpeng Zhao, to repatriate assets of Binance US clientssubsidiary that will be prohibited from spending on corporate assetsrather than to cover operating costs and disburse to customers who want to withdraw their deposits.
The decision was informed this Saturday by the Judge Amy Berman Jacksonof the Washington State Federal Court.
What is the agreement between Binance and the SEC?
The agreement, reached by both parties, will protect client funds and at the same time, keep the platform operational.
Initially, the SEC asked the courts for a total asset freeze from Binance.US, which, from the firm, they indicated would harm their business and their clients.
After the deal, a Binance.US spokesperson told the Bloomberg news agency that the firm was “pleased” to have resolved this point on mutually acceptable termsalthough he reiterated that the request to freeze the assets “had no justification.”
“Customer funds have always been and always will be safe on Binance affiliated platforms”the representative said.
Report Binance
Last week the SEC issued a complaint to a federal court in which accused Binance and Zhao of misusing client funds, misleading investors and regulatory authoritiesyes, and for break applicable securities laws.
“We assert that Zhao and the Binance entities were not only aware of the rules, but knowingly they chose to ignore them and put their customers and investors at risk in order to maximize their own profits,” the SEC denounced.
cryptocurrencies
The agency noted that Binance incurred a trust abuse to the divert assets from your customers to Merti Peak Limiteda company also controlled by Zhao.
“Through thirteen counts, we found that Zhao and Binance entities woven an extensive web of deceptionconflicts of interest, lack of transparency and premeditated violation of the legal order,” he added in a 136-page presentation.
The company later pointed out in an email to your customers that the SEC’s allegations “were unsubstantiated“, and that the regulator’s tactics are “extremely aggressive and intimidating.”
Source: Ambito
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