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Binance CEO Pleased With SEC/Binance Resolution, Deems SEC Request for Emergency Relief as Unnecessary

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Binance CEO Changpeng Zhao (CZ) took to Twitter on June 17 to express his happiness regarding the resolution of the exchange’s latest clash with the US SEC. 

The CEO stated that the SEC’s request for emergency relief was unnecessary while noting that both parties have resolved the disagreement.

He also reaffirmed that user funds remain safe on all Binance-affiliated platforms. This remark comes following a consent order obliging Binance to repatriate all fiat and crypto assets held on behalf of US customers. 

Binance to Continue US Operations Pending SEC Lawsuit Resolution

The emergency relief allows US users to withdraw funds from Binance while the assets held under the exchange remain in the United States. The consent order impels Binance to open new digital wallets for US customers and transfer assets to the new wallets within two weeks.

Furthermore, the order restricts Binance global officials from accessing the private keys of all wallets (cold and hot) belonging to US customers.

 It requires the SEC oversight on the crypto exchanges expenditure record to prevent Binance and its officials from spending corporate assets except for business expenses. Previously, the SEC filed a Temporary Restraining Order (TRO) against Binance.US for the period of its litigation against the exchange. 

The regulator wanted Binance.US to cease operations and freeze all assets until the court resolves the securities law violation and fraud charges against Binance by the SEC. 

However, on Saturday, June 17, US federal judge of Columbia District Court Judge Amy Berman approved a consent order after both parties came to a concession.

The agreement between Binance, Binance.US, and the SEC allows Binance to continue operating in the US till they settle the fraud and security violation charges.

In another tweet, Binance.US also said it’s pleased that the court has not granted the SEC’s request for a temporary restraining order (TRO) and freeze of assets. The exchange said the SEC’s TRO request is unjustifiable by the law and facts.

Binance and Coinbase SEC Lawsuits

While the latest resolution allows world’s largest crypto exchange to continue its operations, the June 5 lawsuit remains unsettled. The SEC alleges that the crypto exchange violated US securities law by offering unregistered securities. 

The lawsuit also alleged that Binance and its CEO, CZ, commingled funds and diverted them into an entity owned and controlled by CZ called BAM Trading. 

US-based crypto exchange Coinbase faces similar charges by the SEC. On June 6, the SEC sued Coinbase for “operating an unregistered security exchange.” The regulator alleges that over a dozen crypto assets on Coinbase’s platform are unregistered securities.

Following the SEC’s lawsuit announcement, Coinbase CEO, Brain Armstrong, said his firm is “proud to represent the industry in court to get some clarity around crypto rules.”

The two regulatory scandals on the two largest crypto exchanges have marred the industry with market downturns. Industry leaders have lamented over the regulatory atmosphere in the US, noting that it could push investors ashore. 

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