Yuan An and the U.S
Yuan An and the U.S. Securities and Exchange Commission (SEC) are expected to reach an agreement before Thursday to avoid freezing assets.
On Tuesday local time, US District Court Judge Amy Berman Jackson stated that,There is "not much disagreement" between Coin An and the SEC on how to protect billions of dollars in customer funds, and they will not close the Coin An Exchange during the litigation period.
Coin An and the SEC will hold a negotiation, and Jackson has appointed a magistrate as the mediator,And require all parties to finalize the final details before Thursday.
Jackson admitted,If an agreement is reached, there is absolutely no need for her to issue a restraining order.
At the same time, Jackson requested that the Cryptocurrency trading platform in the United States, Minan America, submit a list of "general project expenditures" before Wednesday morning, US Eastern Time.
The SEC proposed on Tuesday to freeze the assets of BAMTrading Services, a subsidiary of Coin An, and repatriate the company's management. BAMTrading operates Coin On America together with Coin On.
A lawyer from the SEC stated that there is a risk that Coin An may transfer customer assets overseas, making it necessary to freeze assets. In court,The proposal was criticized by Jackson.
However, according to media reports,Regarding the question of whether any funds from Coin An's US clients have flowed out of the US, Coin An's answer seems to have made Jackson feel "frustrated".
Coin An: Refusing to accept the "death sentence"
Earlier that day, Jackson hinted that she may be inclined to impose certain restrictions on the access of the Coin Security platform to Coin Security US assets, but not a comprehensive restriction order.
SEC lawyer Jennifer Farer told the judge on Tuesday, "We are open to the continued operation of (Coin An)'s business
A representative lawyer from Coin An America told the judge,Coin An refused to accept the "death sentence" on the eighth day of the case trial.
Jackson agreed and said at a hearing:The complete closure will have a significant impact on Coin Security and even the entire digital asset market
Farer stated that in terms of holding encrypted assets and funds, Coin An has provided different versions of the story before and after. At first, Coin America told the SEC that it had reached an agreement with Coin America, then changed its tone and said that the agreement was not operational. Finally, it was said that the non operational agreement had been suspended.
Are crypto assets securities? The judge is not satisfied with the answer
Jackson also explored the core issue of this lawsuit:Is encrypted asset a security? If it is not a security, is it a commodity?
According to reports, although the judge raised some basic questions on this issue, she was not satisfied with the answer.
As the hearing was about to begin, the judge requested the SEC's lawyers to distinguish between "crypto assets" and "crypto asset securities".
Matthew Scarlato, another lawyer representing the SEC, told the judge that the SEC had cited several examples of Cryptocurrency belonging to securities in its broader litigation.
It was mentioned on Wall Street that since the SEC filed a lawsuit against Coinbase and Coinbase, the Cryptocurrency, which is regarded as unregistered securities by the US regulators, has exceeded 120 billion dollars.
In addition, she asked Matthew Martens, the representative lawyer of Coin On America, whether the BNB token under Coin On is a commodity.
This is a type of encrypted asset, "Martens said vaguely.
Last Monday, the SEC formally sued Yuan An and its CEO, Changpeng Zhao, for violating U.S. securities laws and regulations. It believed that Yuan An and Stablecoin sold BUSD without registration, and accused them of participating in a wide range of fraud, conflict of interest, lack of disclosure and deliberate evasion of laws. The next day, the SEC demanded an urgent freeze on the assets of Coin Security United States.
In the lawsuit against the SEC, Coin America firmly stated that its customer assets are safe, but argued at the hearing that blocking all capital flows would weaken its business and cause harm to customers.
According to the SEC lawsuit, Yuan'an illegally transferred billions of dollars of customer funds to the bank account of the entity controlled by Changpeng Zhao. The regulator said that the funds were first transferred to a third party and then used to buy and sell Cryptocurrency.
In response, Coin An proposed a compromise plan,This includes transferring the encrypted assets of US customers to new wallets with new private keys, which will be separately controlled by Coin US employees stationed in the United States.
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