June 17 (Portal) – Binance, Binance.US and the United States Securities and Exchange Commission have reached an agreement to ensure that only Binance.US employees have short-term access to client funds, court documents show.
Under the agreement, which still requires approval from the federal judge handling the case, Binance.US will take steps to ensure that no Binance Holdings officials have access to private keys for their various wallets, hardware wallets, or root access to have Binance. The documents showed that it was the Amazon Web Services tools of the USA.
The proposed agreement comes after the SEC sued Binance, its CEO and founder Changpeng Zhao and the operator of Binance.US last week, prompting a dramatic escalation in US regulators’ crackdown on the industry. The SEC then also sued the major US exchange Coinbase (COIN.O).
Binance.US and SEC did not immediately respond to Portal’ request for comment.
Binance’s US subsidiary halted dollar deposits last week, giving customers until June 13 to withdraw their dollar funds after the SEC asked a court to freeze their assets.
Additional terms in the proposed agreement include Binance.US creating new crypto wallets that global exchange staff will not have access to, providing additional information to the SEC and agreeing to an expedited discovery plan, the filings read.
Reporting by Baranjot Kaur in Bengaluru; Adaptation by Stephen Coates and Louise Heavens
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