Binance agrees to allow only US employees to access SEC client funds

June 17 (Reuters) – Binance, Binance.US and the US securities regulator signed an agreement to ensure that only Binance.US employees have short-term access to customer funds, according to court documents.

Under the agreement, which still requires a sign-off from the federal judge overseeing the case, Binance.US will take steps to ensure that no Binance Holdings officials have access to its various wallets, hardware wallets or private keys for root access to Binance. Amazon Web Services Tools of the United States, the filing showed.

The proposed deal comes after the SEC sued Binance, its CEO and founder Changpeng Zhao and the operator of Binance.US last week, in a dramatic expansion of the crackdown on the industry by US regulators. The SEC has since sued major US exchange Coinbase ( COIN.O ).

Binance.US and the SEC did not immediately respond to Reuters’ request for comment.

Binance’s American subsidiary suspended dollar deposits last week and gave customers until June 13 to withdraw their dollar funds.

Other provisions in the proposed deal would see Binance.US create new crypto wallets that employees of the global exchange do not have access to, provide more information to the SEC and agree to an accelerated discovery schedule, the filings said.

Reporting by Paranjot Kaur in Bangalore; Editing by Stephen Coates and Louise Havens

Our Standards: Thomson Reuters Trust Principles.

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