The US Securities and Exchange Commission (SEC) announced on Saturday that Binance, the world’s largest cryptocurrency exchange, has agreed to repatriate assets held for the benefit of customers of the Binance.US trading platform. The move comes as the SEC pursues a major lawsuit against Binance for securities law violations. The regulator did not specify the number of customers affected or the value of the repatriated funds. The SEC added that it would ensure the funds are secure.
Earlier this month, the SEC filed charges against Binance for allegedly violating securities laws, including permitting US residents to trade, despite the platform not being registered in the US as a securities exchange. The case also accuses the firm of misusing customer funds. The SEC says it wants to ensure the safety of US customer funds. The court order also prohibits Binance and its founder, Changpeng Zhao, from diverting or commingling customer assets. Gurbir Grewal, director of the SEC’s enforcement division, said in a statement that the prohibitions are essential to protecting investor assets, given that Zhao and Binance have control of the platforms’ customers’ assets.
The SEC also stated that US customers will be able to withdraw their assets from the platform while the alleged underlying misconduct is resolved. Binance’s spokesperson has confirmed that user funds have always been safe and secure on all Binance-affiliated platforms. The spokesperson added that while the company maintained that the SEC’s request for emergency relief was unwarranted, it was pleased that the disagreement was resolved on mutually acceptable terms.
Founded in Shanghai in 2017, Binance has cornered much of the cryptocurrency trading market, making its founder Zhao a billionaire. However, the platform has long been accused of facilitating money laundering, setting up complex structures to avoid regulation, and busting sanctions, which it denies. The SEC charges come after Binance halted US dollar deposits and encouraged clients to withdraw their dollars earlier this month. The case also follows charges in March against Binance by another US regulator, the Commodities Futures and Exchange Commission, and as the company faces a legal probe in France on allegations of illegal trading and money laundering.
In summary, Binance has agreed to repatriate assets held for the benefit of customers of the Binance.US trading platform amid a major lawsuit by the US Securities and Exchange Commission for securities law violations. The SEC wants to ensure the safety of US customer funds, and the court order prohibits Binance and its founder from diverting or commingling customer assets. US customers will be able to withdraw their assets from the platform while the alleged underlying misconduct is resolved. Binance has faced numerous allegations of facilitating money laundering, avoiding regulation, and busting sanctions, which it denies.
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