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Judge Signs Off on Binance, SEC Deal to Move All U.S. Customer Funds, Wallet Keys Back Onshore in Lieu of Restraining Order.

The proposed agreement addresses the SEC’s motion for a temporary restraining order.

A temporary deal between the U.S. Securities and Exchange Commission (SEC), the international cryptocurrency exchange Binance, and its American branch was approved by a federal judge.As the regulator and businesses work through an SEC complaint, the US take steps to ensure that only local personnel have access to customer assets.

Judge Amy Berman Jackson of the District Court for the District of Columbia signed the agreement early on Saturday after it was publicized by the parties late on Friday. The agreement will prevent anybody other than Binance.US staff from temporarily accessing customer funds. The judge also mandated that the parties start formulating proposed timetables for the overall dispute.

According to the proposed agreement, Binance.US will take steps to make sure that no officials from Binance Holdings, the global exchange, have access to private keys for wallets or hardware wallets, or root access to Binance.US’s Amazon Web Services tools. The U.S.-based crypto trading platform will share detailed information about its business expenses, including estimated costs, in the coming weeks.

The proposed agreement is a response to the SEC’s request to freeze all of Binance.US’s assets while it investigates the exchange for alleged violations of securities laws. If a temporary restraining order (TRO) was not issued, the regulator claimed it was worried that money may be transferred overseas or records might be destroyed. Binance.Attorneys for the US retaliated by asserting that freezing all assets would be equivalent to the “death penalty.”

Judge Jackson told the parties that it would be better for them to come to an agreement on a proposed stipulation than to have her craft a restraining order, which would come with a two-week time limit. Two weeks would give insufficient time to prepare, given the more than 4,000 pages of exhibits the parties have already filed, she said during a hearing earlier this week.

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