The Securities and Exchange Commission (SEC) has reached a deal with Binance, the world’s largest cryptocurrency exchange. This was done to protect the assets of US customers within the country. Furthermore, this deal comes in response to a previous lawsuit filed by the SEC. They accused the crypto exchange of multiple wrongdoings in the case.
The arrangement, which is still subject to approval by the federal judge handling the case, attempts to protect the assets of US customers. This agreement ensures that these assets are not relocated abroad. To accomplish this, only the platforms workers will have access to these assets. According to the SEC, Binance falsely exaggerated trading volumes and misled customers.
Binance US will take steps to guarantee that Binance Holdings officials do not have access to private keys or digital wallets under the terms of the agreement. This approach aims to improve the security and integrity of customer assets.
The SEC underlined the significance of safeguarding investor assets. Especially given Changpeng Zhao’s grip on the company. The agreement does not end the dispute, but the SEC noted that it obtained immediate relief measures to protect the assets of the platforms customers. This enables them to continue extracting assets.
— Walletor (@walletorapp) June 17, 2023
Binance expressed satisfaction in a statement that the issue over the SEC’s request for immediate relief had been settled. They were very pleased that it was settled amicably. In addition, the company informed its users that their cash was and will continue to be safe and secure across all platforms.
Binance US would build new crypto wallets that will be inaccessible to global exchange staff as part of the proposed deal. They will also submit further information to the SEC. Binance and the SEC’s agreement is a significant step toward resolving regulatory issues.
The result of the lawsuit will determine the next steps and potential consequences for Binance US. Moreover it will also have a huge impact on the cryptocurrency industry as a whole. Meanwhile, in response to the SEC’s order to freeze its assets, Binance.US has suspended dollar deposits and set a deadline for consumers to remove their dollar cash.