Binance CEO Changpeng “CZ” Zhao expressed pleasure at the amicable resolution of a recent emergency relief request from the U.S. Securities and Exchange Commission (SEC) that would have resulted in the freezing of client funds.
Binance.US and SEC agree on consent order
CZ highlighted the company’s commitment to ongoing operations despite the difficulties and regulatory barriers faced by Binance recently. He emphasized that user funds are safe and secure across all Binance-related services and will remain so in the future.
The cryptocurrency exchange has continuously prioritized the safety and security of user funds during the regulatory review and put strong security measures in place across all related platforms.
The news comes after Judge Amy Berman Jackson of the U.S. District Court of Columbia approved the “Proposed Stipulation and Consent Order” between Binance, Binance.US, and the SEC on June 17.
Binance was ordered to “repatriate” all fiat money and cryptocurrency assets connected to Binance.US by a certain date. The agreement also limits Binance global employees, prohibiting them from accessing any wallet’s private keys, including cold and hot wallets.
The consent order and asset repatriation agreement between Binance.US and the SEC will also prevent freezing the exchange’s assets while establishing greater transparency and control, allowing the world’s largest exchange to continue its operations.
SEC seeks emergency order against Binance.US
The regulator had previously submitted an emergency motion in a press release on June 17 requesting the freezing of funds owned by Binance.US and the return of assets belonging to its users.
The SEC cited Binance’s alleged illegal actions as the motivation behind its attempt to safeguard the customer’s assets and to prevent the loss of available assets for any judgment.
The move also sought to stop the defendants mentioned in the SEC’s case from destroying, altering, or hiding important records.
The filing follows SEC’s complaint against Binance and its CEO, Changpeng Zhao. The agency filed 13 civil complaints against the top cryptocurrency exchange, accusing it, among other things, of mixing customer funds and avoiding regulators.