SEC Case Hamstrings Binance.US

What does the future of Binance.US look like? The crypto exchange, founded as a U.S. offshoot of Binance in 2019, is in a precarious situation after the Securities and Exchange Commission sued both exchanges and their founder, Changpeng Zhao, for securities violations earlier this month. The allegations included that Binance and Zhao commingled customer assets and secretly controlled Binance.US.

A judge approved an agreement on Saturday between the SEC and Binance.US for the exchange to store customer funds in new crypto wallets that cannot be accessed by Zhao or Binance. In a statement, Binance.US said the agreement will allow it to continue to operate, but that the legal battle has damaged its business and it would defend itself against “unwarranted charges.”