"Fortunately, it can be done in a good way, usually the SEC is difficult to satisfy."
Binance US was able to regain its composure after a federal judge rejected the United States' (US) Securities and Exchange Commission's (SEC) request to freeze the cryptocurrency exchange's assets.
According to US District Judge Amy Berman Jackson on June 13, 2023, Binance US and the SEC agreed not to freeze assets in a bid to protect billions of dollars of customer funds even as the lawsuit continues.
During yesterday's hearing, Jackson said that he no longer needed to decide whether the SEC's request to impose a temporary restraining order should be granted or not if the two sides had reached a mutual agreement.
In context, the SEC has requested an order to freeze Binance US funds shortly after filing a lawsuit against the crypto exchange for violating federal securities laws.
However, Binance US strongly opposed it stating that blocking the flow of funds would not only cripple its business but also that its customers would suffer a number of losses.
Next, the crypto exchange lawyer also argued that Binance US needs to have sufficient funds to cover normal business expenses such as salary payments, rent, vendors and software licensing.
As such, Binance US is proposing a plan that involves transferring US customers' crypto to a new wallet with a new private key, where the wallet will only be controlled by US-based officials.
As part of its plan, Binance US asked for permission to continue paying employees and covering its expenses but it assured no assets would be transferred to benefit the crypto exchange without a judge's approval.
The streak, the SEC asked Binance US to bring back its customer assets to the US following this way can handle customer withdrawals and be under the control of an entity not controlled by Changpeng Zhao (CZ).
