Binance.US, the U.S. arm of the global crypto exchange Binance, has reached a deal with the SEC that allows it to keep operating while facing fraud charges. The SEC had sued Binance.US, Binance, and their founder, Changpeng Zhao, for allegedly running an unregistered and deceptive crypto business.
The SEC had asked the court to stop Binance.US from operating and freeze its assets, but the judge denied the request and urged both sides to negotiate a solution that would protect customer funds. The SEC announced yesterday that they had agreed on a set of terms, which the court approved.
The SEC’s enforcement director, Gurbir S. Grewal, said that these measures were necessary to safeguard investor assets, as the SEC alleged that Zhao and Binance had control over Binance.US’s funds and could misuse them. He also said that the SEC wanted to ensure that U.S. customers could access their funds while the SEC pursued the case.
Binance.US, however, denied any wrongdoing and said that the SEC had no evidence of any misuse of customer funds. Binance.US also said that it would continue to defend itself against the SEC’s charges, which it called a form of “regulation by enforcement” that was unfair and unjustified.