Binance.US and SEC Reach Settlement, Secure U.S. Operations Amid Ongoing Lawsuit

In a recent development, Binance.US has reached an agreement with the United States Securities and Exchange Commission (SEC) that enables the exchange to sustain its operations while dealing with the fraud charges brought against it by the commission.

On June 5, the SEC filed a lawsuit against Binance.US, its global partner Binance, and their founder, Changpeng Zhao, accusing them of running “a web of deception.”

The charges included operating unregistered exchanges, broker-dealers, and clearing agencies, misrepresenting trading controls, oversight on the Binance.US platform, and the unregistered offer and sale of securities.

In response, on June 6, the SEC sought a temporary restraining order to halt Binance.US operations and freeze all assets on the trading platform.

However, Judge Amy Jackson declined to grant the order, urging both parties to find a solution that safeguards consumer assets without shutting down the exchange.

After negotiations, Binance.US and the SEC reached an understanding, obtaining court approval for implementation. Nevertheless, the original lawsuit remains unresolved. As per the agreement, all parties have committed to repatriating assets held for the benefit of Binance.US customers, ensuring their protection.

While acknowledging the agreement with the SEC, Binance.US maintains its stance and readiness to defend itself. The company argues that the SEC has not presented any evidence supporting the allegations of asset misuse.

In a tweet, Binance.US highlighted the absence of evidence mentioned by SEC lawyers in court and criticized the regulatory agency’s “regulation by enforcement” tactic, claiming it has no place in the U.S. justice system.