At this time, the agreement has not yet gone into effect, pending approval by a federal judge.. However, it may ease some of the SEC’s pressure on the site.
As part of the agreement, Binance employees are expected to lose access to Binance.US’s secret keys, hardware wallets, and administrative rights to the division’s services on Amazon Web Services. In addition, the U.S. unit of Binance must turn over to the regulator detailed information about business expenses, including upcoming ones.
The agreement was in response to an SEC decree blocking the assets of Binance.US. The court denied the regulator’s motion, but Judge Amy Berman Jackson advised the parties to compromise. Moreover, such a blocking of assets can only be imposed for two weeks, which is not enough time for a full trial.
As part of the agreement, Binance.US employees must create new cryptocurrency wallets to which they will transfer funds from the site’s customers. Of course, the keys to these wallets should not be available to representatives of the global exchange. Binance.US customers will still be able to withdraw funds.
It should be noted that after the SEC lawsuit against Binance exchange the company announced it will cease trading in Cyprus and the Netherlands, and French authorities began an investigation into the site.