US SEC and Binance US Need to Sort Out Asset Freeze by Thursday

The US Securities and Exchange Commission (SEC) and Binance US, the American arm of the world's biggest digital money exchange, are nearing a solution regarding an urgent plea from the SEC to lock up the assets of Binance's US branches. The federal court has given both parties until Thursday to finalize their agreement.

For these discussions, a magistrate judge has been assigned to facilitate the process. Binance US, the digital money trading platform of Binance in the US, is also required to submit a list of “ordinary business costs” by 9 am ET Wednesday morning.

The SEC recommended on Tuesday that assets owned by BAM Trading Services and BAM Management, both of which operate Binance US, should be returned and temporarily secured while a legal battle with the SEC is ongoing. This proposed move would effectively remove control of these assets from the hands of Binance's founder, Changpeng Zhao.

Last week, the SEC launched a lawsuit alleging that Binance and Zhao had improperly mixed customer assets, deceived customers about the company's ability to spot market manipulation, allowed US customers to trade on foreign digital money exchanges, and did not register as a broker, clearing house, exchange, or securities dealer.

Shortly after filing its complaint, the SEC requested an urgent order to lock up the company's assets. The SEC stated that this step was needed to safeguard the funds of US customers and keep them under the control of the entities.

In separate court documents, Binance expressed its concerns, stating that freezing its assets would effectively close its US operations and cause significant effects on the public and other participants in the digital money market beyond BAM.

Binance explained that its global exchange, Binance.com, offers services to millions of users in over 100 countries. Many of these users utilize Binance's alternate banking services due to a lack of traditional banking options, limited access to banking services, or residence in countries with unstable national currencies.

The SEC noted in its request for an expedited injunction that it wants to ensure the protection of US client assets and avert any possible loss of these assets if a judgment is made against it.

Amy Berman Jackson, a federal district court judge in the District of Columbia who is supervising the case, will make the ultimate judgment. Before the agreement can be put into force, she must grant her permission.

Get the WikiFX App on your mobile phone to keep track of the newest updates. You can download the App at this link: https://social1.onelink.me/QgET/px2b7i8n