Binance prepares to suspend US dollar funding after SEC crackdown

abdelaziz Fathi

Binance.US said it will temporarily suspend US dollar deposits and provided customers with a deadline to withdraw their fiat balances. This decision comes after the US Securities and Exchange Commission (SEC) filed a lawsuit requesting the freezing of Binance’s assets in the country.

Binance.US

In a tweet on Thursday, Binance.US stated that its banking partners are preparing to cease dollar withdrawal channels in response to a crackdown by federal regulators, possibly as early as June 13. The American branch of the world’s largest crypto ecosystem also informed its users that it will no longer accept dollar deposits as it transitions into becoming a “crypto-only exchange.”

The development comes a day after Binance.US paused its over-the-counter trading portal and delisted several crypto tokens. The exchange, however, assured its users that deposits and withdrawals will continue to be available during this period.

In the customer notice shared on Twitter, Binance.US has characterized the SEC’s charges as “unjustified” and stated its intention to vigorously defend itself against them.


Even before the recent crackdown, Binance.US has been already struggling to find banking partners following the collapse of three banks that were known for working closely with the cryptocurrency industry.

The exchange has been left without banking services following the recent failures of US crypto-friendly banks, which forced the exchange to rely on middleman banks to store its funds.

The loss of direct banking relationships has made it more difficult for Binance.US to operate smoothly as it must now navigate a complex web of intermediaries to access the banking services it needs.

Binance.US has made several attempts to establish a direct banking relationship with banks such as Cross Riverbank and Customers Bancorp but were all in vain. The situation forced the exchange to hold its customers’ funds through the banking partners of the financial technology firm Prime Trust.

Earlier this week, the SEC has officially sought a restraining order to freeze the assets belonging to Binance in the United States. The filing, submitted to the U.S. District Court for the District of Columbia, was made just a day after the Securities and Exchange Commission initiated a lawsuit against Binance and its CEO Changpeng Zhao.

Binance.US stated that it considers the lawsuit filed against it to be baseless, and as a result, the exchange is prepared to defend itself in court and challenge all of the unfounded allegations. Binance.US asserts that, based on the available facts, the applicable law, and previous actions by the SEC, the regulator’s complaint lacks justification.

Read this next

blockdag

Top Crypto Highlights for Q2 2024: BlockDAG’s Astonishing 1120% Growth Compared to Solana’s Surge and Toncoin’s Market Triumph

Explore the latest highlights in cryptocurrency: Solana’s recovery, Toncoin’s record levels, and the rise of BlockDAG’s innovative technology.

Digital Assets

Ripple seeks $10 million penalty citing Terraform fine in SEC case

Ripple Labs wants to reduce the financial penalties proposed by the U.S. Securities and Exchange Commission (SEC) by leveraging recent fines imposed on Terraform Labs.

Digital Assets

Swiss regulator shuts down CoinShares’ partially-owned FlowBank

Switzerland’s financial regulator, FINMA, has closed FlowBank SA and placed it into bankruptcy due to severe breaches of capital requirements and other supervisory laws. This follows a series of enforcement actions against the bank that began in October 2021.

blockdag

Presale Power Players: 5 Crypto Presales Primed for Success in 2024 According to Experts

Unlock the potential of the best presale cryptos available now. See why experts recommend BlockDAG, Bitbot, eTukTuk, 99Bitcoins Token, and ButtChain.

Executive Moves

Paxos axes 65 jobs, cuts headcount to below 300

Stablecoin issuer Paxos has laid off 65 employees, equating to 20% of its staff, despite maintaining a robust financial standing.

Institutional FX

US sanctions trigger major shifts in Russian FX market, says Sergey Romanchuk

The U.S. sanctions imposed on June 12 against the Moscow Exchange and its clearing entity, the National Clearing Center (NCC), are set to cause massive disruptions in the Russian currency market, according to FX industry veteran Sergey Romanchuk.

blockdag

BlockDAG’s X1 Miner App Beta Sparks $49.2M Presale Rise; Uniswap & XRP Whales Getting Involved?

Experience BlockDAG’s meteoric 1120% presale rise, Uniswap’s UNI climbing 18%, and Ripple’s XRP anticipating ETF approval. Explore their latest breakthroughs!

Market News, Tech and Fundamental, Technical Analysis

GBPUSD Technical Analysis Report 13 June, 2024

GBPUSD currency pair can be expected to fall further toward the next support level 1.2700, which has been reversing the price from last month.

Institutional FX

U.S. sanctions halt dollar and euro trading on Moscow Exchange

New U.S. sanctions against Russia have led to the immediate suspension of trading in dollars and euros on the Moscow Exchange (MOEX), the country’s largest exchange group.

<