SEC and Binance seek compromise on US assets freeze

The United States Securities and Exchange Commission and BAM Trading (Binance’s U.S. arm) recently submitted a request for a consent order that would reduce some of the limitations imposed by an earlier SEC demand to put a hold on the firm’s resources.

The proposed new consent order would provide the SEC with greater assurance, enabling BAM Trading to fulfill payroll and other financial obligations. As stated in the document:

The condition necessary for unfreezing assets would be that Binance must not, under any circumstances, make payments or transfer any assets to or for the advantage of any Binance individual, entity, or entity acting on behalf of Binance.

The order additionally stipulates that Changpeng Zhao, the CEO of Binance, is not to be given any access to BAM Trading or Binance.US resources.

The SEC, following its lawsuit against Binance and Zhao, filed an urgent petition to the court requesting that the assets of BAM Trading be frozen.

Binance.US has refuted the SEC’s motion to freeze funds, asserting that “all of the SEC’s claims fail”.

BAM Trading reacted by submitting an opposition argument, which declared that, in the opinion of the business and its attorneys, the SEC’s basis for asking for the freeze did not satisfy the standard of proof demanded by the court.

As of the date of this article’s publication, the court has not yet approved the proposed consent order. It seems there is a disagreement between the SEC and Binance about the particulars, and the court has requested more information.

Judge Amy Berman Jackson has, as per a filing visible on PACER, asked both parties to provide any revisions the court should take into account before making a decision concerning the suggested consent order by 1:00 PM EST on June 13.

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