The United States Securities and Exchange Commission (SEC) and BAM Trading (the US division of Binance) presented recently a consent order request that would ease some of the restrictions of an earlier SEC request to freeze the company’s assets.
The new proposed consent order would offer more guarantees to the SEC and would allow BAM Trading to make payroll payments and other financial commitments. According to the document:
“BAM Trading and BAM Management may continue to make payments for the acquisition of goods and services, salaries for BAM Trading and BAM Management personnel, including pre-existing benefits, professional fees and other similar ordinary course expenses for the operation of their businesses” .
The main stipulation that would allow the unfreezing of assets would be that Binance would not, under any circumstances, make payments to or transfer any assets to or for the benefit of any Binance entity or individual or entity acting on behalf of Binance.
The order further states that Binance CEO Changpeng Zhao, specifically, may not have access to any BAM Trading or Binance.US assets.
Following the SEC’s lawsuit against Binance and Zhao, the commission presented an emergency application to the court to have the assets of BAM Trading blocked.
BAM Trading replied presenting an opposition argument, essentially asserting that the company and its lawyers believed that the SEC’s underlying justification for requesting the freeze did not meet the burden of proof required by the court.
The court has not yet approved the proposed consent order at the time of this article’s publication. There appears to be a disagreement between the SEC and Binance regarding the details, and the court has requested further clarification.
Judge Amy Berman Jackson, according to a document viewed by Cointelegraph on the Electronic Court Records Public Access website, has asked both parties to file by 1:00 p.m. ET on June 13, any changes that the court must consider before making a decision on the proposed consent order.
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