Binance.US, one of the leading cryptocurrency exchanges, has announced the suspension of USD deposits and urged its users to withdraw all US dollar funds by June 13th. However, users are currently experiencing a major outage in the withdrawal service.
Binance.US Suspends USD Deposits and Urges Withdrawal
Binance.US, has recently made an important announcement regarding its operations. In order to ensure compliance with regulatory requirements, the exchange has taken the decision to temporarily suspend USD deposits. Also, customers ahve been advised to withdraw their funds.
Consequently, Binance.US has advised its users to initiate the process of withdrawing all their US dollar funds before the specified deadline of June 13th.
Unfortunately, users are currently facing a significant challenge as they encounter a major outage in the withdrawal service. This unexpected disruption in the withdrawal functionality has created a sense of frustration and uncertainty among the user base.
In its statement, Binance.US expresses concerns over the aggressive tactics employed by the US Securities and Exchange Commission (SEC) in its pursuit of regulatory compliance. As a result of these tactics, challenges have arisen for the banks associated with Binance.US. Consequently, this has led to the suspension of USD deposits and potential delays in fiat (USD) withdrawal channels.
Binance.US Faces Legal Troubles
The SEC has filed a lawsuit against Binance.US, seeking to freeze its assets. This legal action is part of the agency’s broader efforts to regulate the American digital asset industry. Binance.US claims that the SEC’s actions are motivated by an ideological campaign against the industry.
Further, Binance.US has accused SEC chairman Gary Gensler of attempting to close down the US cryptocurrency industry. They also claim that Gensler sought employment with Binance in 2019, suggesting that he should recuse himself from the lawsuit. These accusations further complicate the legal battle.
Ripple Effects in the Crypto Industry
Coinbase, the largest cryptocurrency exchange in the United States, is facing similar legal troubles. The SEC has filed a lawsuit against Coinbase, intensifying concerns about the future of centralized exchanges in the US.
Following the SEC’s lawsuit against Binance.US, the exchange has experienced negative net flows. Previously positive at $78 million, the net flow turned negative to -$123.6 million after the SEC sought a temporary restraining order to freeze Binance.US assets.
The SEC reveals in court filings that Binance entities utilized the services of Silvergate Bank and Signature Bank to move approximately $50 billion in dollar funds. These details shed light on the ongoing legal complexities faced by Binance and its associated entities.
Former Binance US CEO Brian Brooks has stated that it became apparent that CZ, the head of the Binance group, was the true CEO of BAM Trading, contradicting CZ’s claim of separate management structures. These revelations raise questions about the internal workings of Binance.US.