The U.S. Securities and Exchange Commission (SEC) and Binance’s U.S. subsidiary, BAM Trading, have jointly sought a consent order, which could modify some restrictions from a previous SEC asset freeze directive against the company. This prospective consent order aims to provide more assurances to the SEC while enabling BAM Trading to meet payroll and other financial obligations.
The new order would permit BAM Trading and its management to continue purchasing goods and services, pay employee salaries, cover pre-existing benefits, professional fees, and other ordinary business expenditures. However, it strictly prohibits Binance from transferring any assets to or for the benefit of any Binance-affiliated entity or individual, under any circumstances.
In this context, the order specifically mentions that Binance CEO Changpeng Zhao should not have access to any assets belonging to BAM Trading or Binance.US.
The SEC had filed an emergency request to freeze BAM Trading’s assets following its lawsuit against Binance and Zhao. In response, BAM Trading submitted a counter-argument, insisting that the SEC’s reason for requesting the freeze failed to meet the necessary burden of proof set by the court.
As of now, the proposed consent order is awaiting court approval. It seems that disagreements over certain specifics between the SEC and Binance are causing some delay. The court has requested additional clarification from both sides.
Judge Amy Berman Jackson has asked both parties to propose any changes to the consent order for the court’s consideration by 1:00 pm Eastern Time on June 13, according to a document viewed on the Public Access to Court Electronic Records website. The court will decide on the consent order after evaluating the input from both parties.
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