American court orders SEC and Binance to continue negotiations

An American court rejected the SEC’s request to freeze Binance·US assets. The parties must now resume negotiations.

Earlier, the Securities and Exchange Commission filed a lawsuit against the crypto exchange and its American division. The regulator is convinced that the company operated as an unregistered stock exchange where transactions with securities were carried out.

In addition, the SEC is confident that Changpeng Zhao, being a citizen of Canada, gained access to the assets of clients of the American division of Binance. The Commission also tried to block the company’s assets, explaining its initiative by the need to secure users’ funds. Binance also said that clients’ investments are safe, and the asset freeze will harm businesses and users.

“We are not ready to accept the death penalty eight days after the start of our case,” one of the Binance·US lawyers told the judge.

According to lawyers, the platform should be able to cover normal operating expenses, such as rent, salaries of employees, services of suppliers. The judge agreed that the suspension of Binance in the US would cause serious problems not only for the company, but for the crypto market as a whole.

There is “absolutely no need” for a restraining order, she said, if the parties can agree on restrictions. In addition, she ordered Binance to provide details of the costs by the end of tomorrow.

The crypto company has already proposed a compromise option, which would include the transfer of clients’ digital assets to wallets with new private keys, for which American Binance employees will be responsible. The SEC has yet to respond to this proposal.

And the former employee of the Commission on the stock market and exchanges, John Reed Stark, believes that the US Department of Justice may initiate criminal proceedings against top managers of Binance.

“There are many indicators that the Ministry of Justice will file or have already filed a criminal charge related to Binance,” the expert said.

According to him, the demands of the regulators against Binance are intertwined with accusations of fraud, defrauding customers, and money laundering. The former official believes that all this is preparation for the future criminal prosecution of the crypto company by the authorities.

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