© Reuters. FILE PHOTO: A smartphone with the Binance logo displayed and a representation of cryptocurrency is placed on a keyboard in this illustration taken, June 8, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) – Binance, Binance.US and the US securities regulator have announced a deal to ensure that only US employees will have access to clients’ funds in the short term, CoinDesk reported Saturday, citing a proposed agreement.
Under the agreement, which still needs to be signed by the federal judge overseeing the case, Binance will take steps to ensure that no Binance Holdings administrators can access the private keys of its various wallets, hardware wallets, or root access to Binance. The report said that the US Amazon Web Services Tools (NASDAQ:).
The proposed agreement comes after the Securities and Exchange Commission (SEC) sued Binance, CEO and founder Changpeng Zhao and US operator Binance.US last week, in a significant escalation of a crackdown on the industry by US regulators. The Securities and Exchange Commission (SEC) also sued Coinbase (NASDAQ) in the US afterward.
Binance.US and the SEC did not immediately respond to a Reuters request for comment.
US subsidiary Binance Corp suspended dollar deposits last week and gave customers until June 13 to withdraw their dollar funds, after the SEC asked the court to freeze its assets.
Other provisions of the proposed agreement, the report said, would see Binance, the US create new crypto wallets that are not accessible to employees of the global exchange, submit additional information to the SEC and agree to an accelerated discovery schedule.