- Binance US aggressively fought the SEC’s demand over funds freeze.
- The court has asked Binance U.S. to submit operation expense details.
The SEC had requested that Binance U.S funds and other assets be frozen. A US federal court has ruled against the proposal of the SEC. Binance had only the day before urged the court to dismiss a similar SEC proposal.
Binance U.S and Securities and Exchange Commission have agreed to discuss a settlement in order to prevent a complete asset freeze, according to a statement released by US District Judge Amy Berman Jackson on Tuesday, June 13th. Jackson says the two sides “aren’t that far apart” on how to protect customers’ billions of dollars throughout the case without shutting down the exchange.
Negotiation Underway
After initiating a case against Binance for suspected violations of U.S. federal securities laws, the SEC swiftly proceeded to have Binance’s US funds blocked. The federal securities agency said the injunction was required to prevent unnecessary spending.
However, Binance US aggressively fought the SEC’s demand, stating that such a move would ultimately ruin the firm and do irreparable harm to its customers. As the hearing has progressed for eight days, the lawyers for Binance US have notified the court that their client is not willing to accept the death sentence so early.
Also, according to Binance, the exchange must have enough cash on hand to cover operational costs. The legal representation for binance.US voiced worry about the possibility of a misinterpreted asset freeze by banks. The court has asked Binance U.S. to submit operation expense details.
However, it guaranteed that no assets would be transferred or payments would be made to any Binance business without the consent of a court.
Moreover, in response, the SEC suggested Binance relocate its customers’ funds back to the United States. In this method, the assets would be managed by third parties that are independent of CEO Zhao and capable of processing withdrawal requests.
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