Court wants Binance.US, SEC to avoid full asset freeze

A federal judge set a Jun. 15 deadline for the SEC and Binance.US to resolve the matter, a bid to avoid damaging crypto markets

article-image

Binance CEO Changpeng Zhao | Web Summit/"Changpeng Zhao" (CC license)

share

Binance.US and the Securities & Exchange Commission (SEC) are racing against a deadline to strike a deal that could prevent a full asset freeze for the exchange.

The commission initiated legal action against Binance and affiliated entities on earlier this month. Following that, the SEC requested a temporary restraining order and asset freeze.

US District Judge Amy German Jackson on Tuesday encouraged the SEC to find middle ground with Binance.US. Doing so could pave the way for Binance to maintain its operations within the US.

Jackson gave the parties until Jun. 15, 5pm ET to figure things out and chose a magistrate judge Zia Faruqui to help negotiations, according to an order filed Tuesday.

Binance.US also needs to submit a list of regular expenses by June 14 at 9am ET. Binance.US suspended US dollar deposits last week and warned users that withdrawals could be suspended as early as Tuesday, in preparation for the court session.

The SEC also suggested a new deal on Tuesday that would relax certain limitations which previously demanded a total freeze of assets. 

The proposed agreement provides some guarantees to Binance affiliate BAM Trading (which runs Binance US), allowing the firm to maintain control over its US assets for paying salaries and fulfilling other financial obligations.

BAM Trading would also be able to assist customers in redeeming their crypto assets without any restrictions.

“BAM Trading and BAM Management may continue to make payments for the purchase of goods and services, salaries for BAM Trading and BAM Management personnel, including preexisting benefits, professional fees, and other similar ordinary-course expenditures for the operation of their businesses,” the order states.

SEC demands user crypto be sent back to Binance.US

The proposed order stipulates that Binance CEO Changpeng Zhao would have no access to the US exchange’s assets or wallets.

The SEC further requested that Binance bring back customer assets to the US, where entities independent of Zhao would have control and could handle customer redemptions. 

In its lawsuit, which cites 13 separate counts, the SEC claimed that Sigma Chain and Merit Peak, two foreign entities controlled by Zhao, were used as a means to commingle billions in customer funds with Binance’s own. 

These companies are believed to have operated as Binance market makers or intermediaries meant to provide liquidity for the exchange.

Blockworks has reached out to Binance for comment. Binance earlier stated that freezing its assets would essentially stop its business in the US and prevent any transfer of funds, including redemptions.

And the judge reportedly agreed, saying during the hearing that completely shutting it down would have significant consequences not just for the company, but for the wider crypto market too.

The SEC’s proposal is still awaiting approval, and more updates are anticipated on Thursday.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (19).png

Research

Suilend has grown into the top money market and liquid staking provider on Sui. STEAMM, Suilend’s Superfluid AMM, presents a compelling avenue for growing market share within Sui’s DEX landscape and revenue generation for the protocol. Suilend’s multi-product suite position it well for owning market share across key verticals. While current metrics across the Sui ecosystem are likely inflated due to Sui Foundation incentive programs, SEND trades at amongst the lowest multiples in the lend/borrow sector, suggesting that a bull case for continued growth in the ecosystem may be mispriced.

article-image

Decentralized money was a “very unpopular goal” when concepts were proposed in the ’90s, said Nick Szabo

article-image

Cove aims to deliver “risk-adjusted yield” through curated DeFi vaults

article-image

The best capital markets are open to the most people — and crypto capital markets are open to everyone

article-image

Post-conference musings on Firedancer, Kraken, Solana Mobile and Trump

article-image

Executives expect others to follow SharpLink Gaming’s lead in purchasing an asset that has surged this past month

article-image

After a weekend of tariff policy shifts, investors appear confident that trade deals are underway