Binance.US, SEC Working on Deal to Avoid Full Asset Freeze

Binance.US and the SEC have reached an agreement to prevent a complete freeze of assets at the cryptocurrency trading platform. The SEC has accused the platform of operating illegally.

On Tuesday, US District Judge Amy Berman Jackson stated that both parties are relatively close to finding solutions that would safeguard customer funds, allowing the exchange to continue operating while the SEC’s lawsuit progresses. She recommended that they seek the assistance of a magistrate judge to negotiate a compromise agreement.

Related: SEC sues Binance and CZ for securities violations

“The nitty-gritty of it is better handled by you than by me,” Jackson said during a hearing in Washington. The judge said if a deal is struck, she would no longer need to rule on the SEC’s request for a temporary restraining order.  

During the hearing, Binance.US, which is currently contesting the SEC’s lawsuit and assuring the safety of customer assets, presented its argument against the complete freezing of funds. They emphasized that such a measure would severely impact their business operations and have negative consequences for their customers.

“We are not willing to accept the death penalty eight days into our case,” one of the Binance.US lawyers told the judge.

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