Binance US In SEC Highlights: Court Guarantees Customer Asset Security

Binance.US. (Photo; Doc. Cryptopolitan)

JAKARTA - United States Regulator, Securities and Exchange Commission (SEC) announced it had reached an emergency agreement with Binance US and Binance founder Changpeng Zhao (CZ).

This agreement requires Binance US to repatriate all assets owned to the United States in the interest of US unit customers. This decision was outlined in an order from the United States District Court for the District of Columbia.

This court order guarantees Binance US users that they can withdraw their assets from the trading platform. The SEC emphasizes that assets stored in Binance US will be protected and remain in the United States.

Previously, there were reports of this agreement based on court filings. According to the report, only US Binance employees will have access to US customer funds under this agreement, not officials from Binance Holdings, operators of global trading platforms.

The SEC has sued Binance for alleged violations of US securities laws, citing concerns over asset security and allegations of misuse of customer funds. During a trial in Washington, lawyers representing Binance asked the court to reject the SEC's request, arguing that asset freezes would destroy US-based entities.

US District Judge Amy Berman Jackson provides an opportunity for both sides to reach an agreement ensuring the security of user funds without destroying the crypto business.

In addition, court orders also prohibit two defendants, namely BAM Trading Services Inc. and BAM Management US Holdings, Inc., to use the company's assets in addition to ordinary business activities. The SEC also requested supervision of the company's asset expenditures.

The ban aims to protect investor assets, given that Changpeng Zhao and Binance have control of platform customer assets. Binance is required to keep US customer assets in the United States during the SEC court process and facilitate customer asset withdrawals. Court orders also prohibit the transfer of assets or funds to Binance Holdings, CEO Changpeng Zhao, or their affiliates.

The court's decision has important implications for Binance's operations in the United States and affirms the SEC's commitment to enforcing securities laws to protect investors. This development will continue to be monitored by market players and crypto communities around the world.