CZ, Binance US Pleased With SEC Deal Despite ‘Unwarranted’ Emergency Relief

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Binance founder Changpeng Zhao (CZ) expressed his satisfaction over the agreement with the U.S. securities regulator preventing the freezing of the exchange’s assets in the United States. The crypto company’s American subsidiary also stated it’s pleased that the SEC’s request for a temporary restraining order has not been granted by the court.

Agreement With the SEC Allows Binance US to Continue Business, Exchange Says

The founder and CEO of the world’s largest digital asset exchange, Changpeng Zhao, took to Twitter on Saturday to mark the positive outcome of the latest episode in the clash with the U.S. Securities and Exchange Commission (SEC). CZ also sought to reassure customers that their funds are safe and secure on any of the platforms affiliated with .

Although we maintain that the SEC’s request for emergency relief was entirely unwarranted, we are pleased that the disagreement over this request was resolved on mutually acceptable terms.

User funds have been and always will be safe and secure on all Binance-affiliated…

— CZ Binance (@cz_binance) June 17, 2023

Zhao’s comments came after he and the entities operating Binance’s American platform agreed to repatriate to the United States assets held on behalf of U.S. customers under a court order secured by the regulator. The emergency relief ensures that U.S. users will be able to withdraw funds from the platform while the assets they keep with the exchange will remain in the country.

Earlier, the SEC had sought a temporary restraining order (TRO) for the assets of Binance US for the duration of its litigation against the exchange’s operators, BAM Trading Services and BAM Management US Holdings, and CZ. The Commission sued them for violating U.S. securities laws as well as commingling and diverting customer funds.

In a separate tweet, Binance US informed users that the United States District Court for the District of Columbia has not granted the SEC’s request for a TRO and freeze of assets on the platform, stating that it was “clearly unjustified by both the facts and the law.”

“Instead, we were able to reach a Court-ordered agreement with the SEC that allows us to continue our ordinary course business. There has never been any evidence presented by the SEC concerning mis-use of customer assets,” the exchange insisted.

Binance US emphasized that the securities regulator’s request “would have effectively shuttered our business, which is consistent with the agency’s continued attempts to kill the crypto industry by any means.” The unit added that the fight with the SEC has damaged its business but not its resolve to defend against “unwarranted charges and ‘regulation by enforcement’ tactics.”

Do you think Binance will eventually win the legal battle with the U.S. Securities and Exchange Commission? Share your thoughts on the case in the comments section below.