Binance.US and the United States Securities and Exchange Commission have agreed to work on an agreement that allows the exchange to avoid freezing all of its assets..
On June 14, Bloomberg reported that US District Judge Amy Berman Jackson referred the two organizations to a magistrate judge to work out a compromise agreement to protect client funds without having to shut down the exchange.
“Shutting it down completely would have significant consequences not just for the company, but for digital asset markets more broadly,” Jackson said. at a hearing held on June 13.
The judge Jackson said he would not make a final decision on the SEC’s request for a temporary restraining order until the two parties had resolved the matter with the magistrate..
An update on negotiations with the magistrate is scheduled for the end of business hours on June 15.
In addition, he pointed out that the SEC and Binance.US did not seem “so distant” in reaching an agreement on the matter.
Before Judge Jackson made her decision at the hearing, former SEC attorney John Read Stark told his 20,000 Twitter followers that there was “a lot of conflict between what each side” wanted to get out of the hearing..
SEC/Binance Newsflash: Dueling Consent Orders (Read Them Now)
The SEC and the Binance defendants have each submitted draft orders of what each party wants the Judge to order in the SEC/Binance Emergency Asset Freeze Enforcement Action.
There is obviously a lot of conflict… pic.twitter.com/UWjXSgL5lR
—John Reed Stark (@JohnReedStark) June 13, 2023
News about the SEC/Binance case: Duel Consent Orders (read it now). The SEC and the Binance defendants have filed draft orders of what each party wants the judge to order in the SEC/Binance Emergency Asset Freeze Enforcement Action. Obviously there is a lot of conflict… pic.twitter.com/UWjXSgL5lR
“That doesn’t mean the judge can’t order to settle and find a middle ground,” Stark explained..
The SEC filed an emergency motion for a temporary restraining order on Binance.US on June 6after to accuse Binance CEO Changpeng “CZ” Zhao being able to access funds from Binance.US clients.
The regulator alleged that Zhao moved $12 billion of funds from Binance through an entity he controlled called Merit Peak..
In a memorandum set filed on June 12 ahead of the restraining order hearing, both Binance.US and Zhao denied claims that the funds were mishandled. They accused the SEC of being “unable to identify a single case” in which Binance.US client funds have been misused.
“In fact, there is no ’emergency’ here, other than the one fabricated by the SEC for its own purposes.”
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