Yesterday, June 13, a hearing was held on the demand of the Securities and Exchange Commission (SEC) to temporarily freeze the assets of the American division of Binance. The regulator was refused due to the fact that the court did not see signs of a potential threat to clients’ funds.
At the same time, the parties were instructed to continue working on the deal. As a reminder, Binance.US offered to transfer all funds of American clients to new accounts with the subsequent transfer of private keys to the federal authorities.
According to unconfirmed information, the SEC initially abandoned the agreement. But the judge insisted on a deal. The parties are due to submit it later this week.
Federal Judge Amy Berman Jackson stressed that if the participants continue to work on the agreement, there is no need for a TRO (Temporary Restraining Order). We also note that she was dissatisfied with the behavior of the SEC.
Lawyers of the regulator could not prove both the fact of access of the top management of the division to private keys, and the precedents of misuse of client funds.
Binance.US is pushing for the company to be allowed to operate. The unit also reiterated the fact that a complete freeze of assets would be tantamount to a “death penalty.”
Source: Cryptocurrency
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