The announcement comes as part of the legal action that the SEC filed in early June against Binance, the world’s largest cryptocurrency exchange, as well as its boss, Changpeng Zhao, for violating current regulation.
The court in the federal capital of the United States, Washington, in charge of the case, issued an order this Saturday after reaching an agreement with Binance and Zhao to repatriate to the United States the assets placed in the country by the clients of the platform.
The decision enters into force this Saturday, specifies the court order to which AFP had access.
The document “also prohibits” Binance and Zhao from “spending corporate assets other than in the ordinary course of business.”
“Since Changpeng Zhao and Binance control client assets on the platforms and have been able to combine client assets or divert client assets at will, (…) these bans are essential to protect assets from investors,” Gurbir Grewal, an SEC official, was quoted as saying in the statement.
He added that the SEC ensures “that US clients will be able to withdraw their assets from the platform.”
Binance announced on June 8 the halt of dollar deposits and encouraged its clients to withdraw their funds from their accounts, following its subpoena by the SEC, which accuses it of having allowed US residents to use its platform despite because the company was not registered with US authorities, nor its cryptocurrencies, such as BNB (Binance Coin), nor its other financial products.