{"id":409486,"date":"2023-06-19T12:30:50","date_gmt":"2023-06-19T12:30:50","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=409486"},"modified":"2023-06-19T13:00:01","modified_gmt":"2023-06-19T13:00:01","slug":"binance-ceo-pleased-with-sec-binance-resolution-deems-sec-request-for-emergency-relief-as-unnecessary","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/binance-ceo-pleased-with-sec-binance-resolution-deems-sec-request-for-emergency-relief-as-unnecessary","title":{"rendered":"Binance CEO Pleased With SEC\/Binance Resolution, Deems SEC Request for Emergency Relief as Unnecessary"},"content":{"rendered":"

Binance CEO Changpeng Zhao (CZ) took to Twitter on June 17 to <\/span>express<\/span><\/a> his happiness regarding the resolution of the exchange’s latest clash with the US SEC.\u00a0<\/span><\/p>\n

The CEO stated that the SEC’s request for emergency relief was unnecessary while noting that both parties have resolved the disagreement.<\/span><\/p>\n

He also reaffirmed that user funds remain safe on all Binance-affiliated platforms. This remark comes following a <\/span>consent order<\/span><\/a> obliging Binance to repatriate all fiat and crypto assets held on behalf of US customers.\u00a0<\/span><\/p>\n

Binance to Continue US Operations Pending SEC Lawsuit Resolution<\/h2>\n

The emergency relief allows US users to withdraw funds from Binance while the assets held under the exchange remain in the United States.\u00a0<\/span>The consent order impels Binance to open new digital wallets for US customers and transfer assets to the new wallets within two weeks.<\/span><\/p>\n

Furthermore, the order restricts Binance<\/a> global officials from accessing the private keys of all wallets (cold and hot) belonging to US customers.<\/span><\/p>\n

\u00a0It requires the SEC oversight on the crypto exchanges expenditure record to prevent Binance and its officials from spending corporate assets except for business expenses. <\/span>Previously, the SEC filed a Temporary Restraining Order (TRO) against Binance.US for the period of its litigation against the exchange.\u00a0<\/span><\/p>\n

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.\u00a0<\/span><\/p>\n

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.<\/span><\/p>\n

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.<\/span><\/p>\n

In another <\/span>tweet<\/span><\/a>, 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. <\/span>The exchange said the SEC’s TRO request is unjustifiable by the law and facts.<\/span><\/p>\n

Binance and Coinbase SEC Lawsuits<\/h2>\n

While the latest resolution allows world’s largest crypto exchange to continue its operations, the June 5 lawsuit remains unsettled. <\/span>The SEC alleges that the crypto exchange violated US securities law by offering unregistered securities.\u00a0<\/span><\/p>\n

The lawsuit also alleged that Binance<\/a> and its CEO, CZ, commingled funds and diverted them into an entity owned and controlled by CZ called BAM Trading.\u00a0<\/span><\/p>\n

US-based crypto exchange Coinbase faces similar <\/span>charges<\/span><\/a> by the SEC. On June 6, the SEC sued Coinbase for \u201coperating an unregistered security exchange.\u201d\u00a0<\/span>The regulator alleges that over a dozen crypto assets on Coinbase\u2019s platform are unregistered securities.<\/span><\/p>\n

Following the SEC\u2019s lawsuit announcement, Coinbase CEO, Brain Armstrong, <\/span>said<\/span><\/a> his firm is “proud to represent the industry in court to get some clarity around crypto rules.”<\/span><\/p>\n

The two regulatory scandals on the two largest crypto exchanges have marred the industry with market downturns.\u00a0<\/span>Industry leaders have lamented over the regulatory atmosphere in the US, noting that it could push investors ashore.\u00a0<\/span><\/p>\n

Read more:\u00a0<\/strong><\/p>\n