- Binance Exchange has received permission to continue operating in the United States.
- The approval comes after Judge Jackson gave a consent order in a June 17 filing.
- The crypto exchange’s operations will run as usual, as it continues to battle the fraud charges filed by the SEC.
Binance is set to continue operations in the United States after Judge Jackson approved the exchanges deal with the US Securities and Exchange Commission (SEC).
Also Read:BlackRock Bitcoin ETF application, making a case for SEC approval
Binance to resume US operations
Binance Exchange has received approval from the court to continue operating in the US. The news comes after Judge Amy Berman Jackson of the DC District Court, overseeing the case, gave a consent order in a June 17 filing.
With this deal, Binance, the defendant, has agreed to repatriate all assets held for the benefit of Binance.US trading customers. The exchange had made this suggestion on Tuesday when the plaintiff filed a petition to freeze its assets.
In a June 13 report, Judge Jackson declined the SEC’s request for a temporary restraining order to have Binance.US assets frozen. Instead, she urged them to work out terms for the exchange to continue operating while the case is ongoing. Citing the Judge:
There’s absolutely no need” for a restraining order should the two sides agree on limits restricting Binance.US’ operations in the United States.
At the time, Binance proposed transferring all assets belonging to Binance.US to new wallets under the sole control of executives at the US-based subsidiary.
Limitations of the deal
Nevertheless, the deal does not free the exchange from the ongoing legal tussle. Based on the report, the lawsuit will continue as planned, which means the agreement borders primarily on investor protection.
The deal also comes as the court wants to protect the industry. On June 13, Judge Jackson urged that “Shutting [Binance.US] down completely would create significant consequences not only for the company but for the digital asset markets in general.”
The deal is limited to allowing Binance.US employees to access customer funds on the US-based crypto exchange. For the avoidance of doubt, Binance Global officials are not allowed access to private keys of all wallets, including cold and hot wallets, hardware, and software. Further, they cannot access Binance.US’ internal systems and controls within 13 days.
It is worth mentioning that the June 17 consent for Binance to continue operating in the US nullifies or invalidates the June 13 application by the SEC to freeze the exchange’s US assets.
In case you missed it, the SEC sued Binance and Binance.US on June 5 for allegedly violating federal securities laws. This came after a three-year investigation. Similar charges were filed against Coinbase on June 6.
The development does not influence Binance CEO Changpeng Zhao’s case. On his part, he is charged with diverting customer funds, hiding that he and the exchange were commingling billions of dollars in investor assets and sending them to a third party owned by CZ himself.
Also Read: Coinbase, SEC executives’ fireside chat shows everyone is talking past each other
As reported, Binance and CZ hired some of the most renowned legal representatives in the lawsuit against the SEC. Based on recent developments, it appears they are doing a good job.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
LINK price jumps 10% as Chainlink races toward tokenization of funds
Chainlink (LINK) price has remained range-bound for a while, stuck between the $16.00 roadblock to the upside and $13.08 to the downside. However, in light of recent revelations, the token, which powers the verifiable web of the decentralized computing platform, may have further upside potential.
Gaming token Notcoin down by almost 50% after airdrop launch
NOT experienced a rapid decline hours after its anticipated launch on Thursday, shedding almost 50% of its value. This continues the cycle of huge selling pressure faced by cryptocurrency airdrops after their launch, especially the launch of gaming tokens in recent times.
Ethereum drops below $3,000 again, spot ETH ETF sparks debate in crypto community
Ethereum again went below the $3,000 key level on Thursday after posting signs of a rally. The price action follows predictions from the community regarding the SEC's decision on spot ETH ETFs next week.
SUI price defends $0.8880 amid multiple Sui network integrations
Sui (SUI) price failed to heed to the broader market recovery on Wednesday, extending the fall to the $0.8880 support level. However, with multiple network integrations in the works, the altcoin has pivoted around this level and is scaling a recovery.
Bitcoin: Why BTC is close to a bottom
Bitcoin (BTC) price efforts of a recovery this week have been countered by selling pressure during the onset of the American session. However, the downside potential appears to have been capped.