Binance.US and SEC Reach Exciting Deal for Asset Oversight
Binance.US and the Securities and Exchange Commission (SEC) have shaken hands on an agreement that keeps the exchange’s assets flowing.
The consent order, greenlit by United States District Judge Amy Berman Jackson, prevents asset freezing but demands increased transparency and oversight.
While Binance.US will repatriate assets, they’ve also committed to ensuring that two of their holding companies maintain possession, custody, and control of all fiat currency and crypto assets deposited, traded, or held by customers within the United States. Binance CEO Changpeng “CZ” Zhao took to Twitter to reassure users of the safety of their funds, emphasizing that they have always been secure across Binance-affiliated platforms.
Cybersecurity consultant and former chief of the SEC Office of Internet Enforcement, John Reed Stark, described the agreement as “unprecedented, exhaustive, and onerous.” It grants the SEC a role akin to that of an independent consultant, a remedy typically given after the SEC prevails in an enforcement action.
As part of the deal, Binance has 45 days to furnish the SEC with a comprehensive list of managed accounts and wallets, including associated financial institutions and account numbers since December 1, 2022. Additionally, they must provide records of asset transfers exceeding $1,000, disclosing recipient names and reasons for the transfers.
The agreement also addresses the SEC’s concerns regarding Binance.US’s solvency, demanding information about encumbrances or limitations on assets and their availability for customer transfer or withdrawal. Binance.US must ensure that no access or control of assets is given to Binance or any entities owned or controlled by Zhao.
To keep things spicy, Binance.US will provide the SEC with monthly reports detailing their ordinary course business expenses. Meanwhile, the SEC’s civil action moves forward with 90 days of expedited discovery granted by Judge Jackson.
Stark offers a word of caution, noting that any violation of the order could lead the US Department of Justice to file obstruction-related charges. So, Binance better toe the line and not falter!
All in all, transparency wins as Binance.US and the SEC find common ground in this thrilling chapter of their saga.
Clever Robot News Desk 19th June 2023
