Binance.US, SEC Ordered to Start Negotiations Wednesday Amid Asset Freeze Tussle

A U.S. federal judge on Tuesday rebuffed SEC's request to order a freeze on Binance.US' assets – provided the parties could agree on limits.

AccessTimeIconJun 14, 2023 at 1:58 p.m. UTC
Updated Jun 14, 2023 at 2:00 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

A U.S. federal judge has ordered crypto exchange Binance, its local affiliate Binance.US and the Securities and Exchange Commission (SEC) to attend a mediation conference on Wednesday to hash out restrictions on operations as the regulator's case against the companies continue.

While the SEC alleged in its suit that the Binance entities sold unregistered securities in violation of U.S. laws and later moved to obtain a temporary restraining order to freeze Binance.US' assets, D.C. District Court Judge Amy Berman Jackson said during a Tuesday hearing that there was "absolutely no need" for such an order if the parties could agree on limits.

Ahead of Tuesday's hearing, Binance.US said freezing the company's assets would "effectively end" the business. Negotiating limits would in the interim allow the firm to continue operations.

Judge Jackson during the hearing showed concern that a requirement to set up another hearing within two weeks did not give the court enough time to go through the thousands of pages in documents and exhibits received by the parties involved.

"What I'm looking for is some variation of what we already have. I think the nitty gritty of it ... is better handled by all of you than by me," Judge Jackson said during the hearing, adding an order crafted by her may not satisfy either party.

In a Wednesday order, the first mediation session was set for June 14 at 2:45 PM Eastern Time before Magistrate Judge Zia M. Faruqui who has, as a former prosecutor, conducted several federal crypto investigations.

Faruqui has previously praised blockchain tracing technology as a powerful tool and called the fear among regulators of "unhosted" crypto wallets held outside of exchange "fiction, not fact."

Nikhilesh De and Jack Schickler contributed reporting.

Edited by Nikhilesh De.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Sandali Handagama

Sandali Handagama is CoinDesk's deputy managing editor for policy and regulations, EMEA. She does not own any crypto.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.