Binance, Binance.US, and the United States Securities and Exchange Commission (SEC) have come to an agreement to protect the funds of US customers amidst an ongoing lawsuit.
Late on Friday night, the parties agreed on a deal that will, for the time being, limit access to funds belonging to customers to employees of Binance.US only.
As the ongoing lawsuit into Binance’s compliance with securities laws is being conducted by the SEC, this action is being taken to ensure the security and protection of customer assets.
The agreement was signed in the early hours of Saturday morning by District Court Judge Amy Berman Jackson of the District Court for the District of Columbia.
Additionally, the judge ordered all parties involved to begin developing potential timelines for the larger lawsuit.
Under the signed agreement, neither Binance Holdings nor its affiliates will have access to customer funds during the investigations and trial.
Only employees of Binance.US will be able to access private keys for hardware or software wallets, as well as root access to Binance.tools provided by Amazon Web Services.
It’s important to note that the Securities and Exchange Commission filed a lawsuit against both Binance and Binance.US, alleging that they offered and traded unregistered securities and engaged in a massive commingling of funds and other unethical business practices.
The proposed settlement does not provide specific details about the larger lawsuit.
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