SEC Wants To Freeze Binance.US Assets But Court Rejects It

SEC is targeting Binance US. (Photo; Doc. Insight Token)

JAKARTA - Binance.US can breathe a sigh of relief after a federal judge rejected a request for the Securities and Exchange Commission (SEC) to freeze funds and assets on their trading platform.

This decision came after Binance submitted a request for rejection of the SEC's proposal. US District Judge Amy Berman Jackson stated that both sides had reached an agreement to protect customer funds without having to close the exchange as long as the lawsuit continued.

Binance.US firmly rejected the SEC's request to block their funds, arguing that the move would harm businesses and their customers. Binance.US argues that they should have sufficient funds for operational needs such as salaries, rents, and other costs. They are also concerned about possible misunderstandings from banks regarding asset freezes.

As a solution, Binance proposed a plan to transfer US customers' cryptocurrencies to a new wallet controlled by US-based Binance.US officers. They also asked for permission to continue paying salaries and business expenses.

The SEC recommends that customer assets be returned to the US and managed by entities unrelated to Binance, so that customer withdrawals can be made.

The trial resulted in a statement that the SEC was open to certain exceptions that allowed Binance.US to remain operational during the freeze. The judge asked Binance.US to apply for details of their business spending to understand the financial requirements that must be met to maintain the continuity of the platform.