SEC and Binance Seek Compromise on U.S. Asset Freeze

Posted on

[ad_1]

The US Securities and Exchange Commission and BAM Trading (the US arm of Binance) recently deposit a request for a consent order that would ease some of the restrictions of a previous SEC request to freeze the company’s assets.

The proposed new consent order would provide more assurances to the SEC and allow BAM Trading to make payroll and other financial commitments. According to the document :

“BAM Trading and BAM Management may continue to make payments for the purchase of goods and services, salaries of BAM Trading and BAM Management personnel, including pre-existing benefits, professional fees and other similar ordinary expenses for the operation of their businesses.

The main stipulation that would allow the unfreezing of assets would be that Binance cannot under any circumstances make payments or transfer assets to or for the benefit of a Binance Entity or an individual or entity acting on Binance’s behalf.

The order further states that Binance CEO Changpeng Zhao, in particular, cannot have access to any BAM Trading or Binance.US assets.

After the SEC lawsuit against Binance and Zhaothe Commission deposit an urgent request to the court to freeze the assets of BAM Trading.

Related: “All SEC Claims Fail” – Binance.US Refutes Freeze Funds Motion

BAM Trading responded with deposit an opposing argument, which essentially stated that the company and its attorneys believed that the SEC’s underlying rationale for seeking the freeze did not meet the burden of proof required by the court.

The court has yet to approve 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 asked for further clarification.

See also  European market shakes off recession fears but misses first-quarter 2023 growth estimates
Screenshot of documents on APCER website.

Judge Amy Berman Jackson, according to a Cointelegraph filing viewed on PACER, asked both sides to weigh in by 1:00 p.m. EST on June 13 with any changes the court should consider before making a decision on the proposed consent order.