Binance.US suspends USD deposits as the SEC digs in
- The SEC has alleged that billions of customer funds were diverted to businesses controlled by “CZ.”
- The SEC is also seeking an express court order from a US federal court to freeze all Binance.US assets.
- Binance has said that suspending USD deposits is aimed at protecting the platform and customers.
Binance.US, the US branch of the Binance cryptocurrency exchange, has informed its customers of an impending halt to fiat USD withdrawal as early as June 13 and has announced the suspension of United States dollar deposits.
On June 9, Binance.US declared that the United States Securities and Exchange Commission had used “extremely aggressive and intimidating tactics” against it, forcing it to take action.
Binance.US USD depositsCopy link to section
The company announced that it has suspended USD deposits in an effort to safeguard its customers and platform. In the announcement which was also shared on Twitter, Binance.US said:
“Today we are suspending USD deposits and notifying customers that our banking partners are preparing to pause fiat (USD) withdrawal channels as early as June 13, 2023. We encourage customers to take appropriate action with their USD.”
The firm also hinted that it is planning to transition to a crypto-only exchange and emphasized that it maintains “1:1 reserves for all customer assets.”
Delisting of USD trading pairsCopy link to section
Binance.US and its banking partners have encountered more difficulties as a result of the SEC’s “ideological campaign against the digital asset industry.” The banking partners have expressed a desire to cut off fiat on-ramps to the exchange.
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Besides suspending USD deposits, Biance.US will also delist USD trading pairs next week. However, Tether (USDTT) trading pairs, will continue to be supported. On June 8, Binance.US already delisted eight BTC pairs and two BUSD pairs and noted that Over-The-Counter (OTC) Trading Portal services had been paused. Bitcoin (BTC) traded at a premium on the U.S. exchange in early May.
Any USD that will remain on the exchange could be converted into a stablecoin that could be withdrawn on-chain, according to the statement from Binance. Binance.US is rushing against the clock after the SEC filed for an express court order from a US federal court seeking to freeze all its assets. The firm has, however, assured customers that assets are safe