Following a lawsuit filed by the Securities and Exchange Commission (SEC), Binance.US has announced that it will temporarily halt customer withdrawals and transition into an all-crypto exchange. The decision was attributed to Binance.US’ banking partners, who have indicated their intention to pause USD fiat channels. The exchange, operated by BAM Trading, stated that it would suspend all USD deposits, while urging customers to withdraw their USD funds via bank transfer by June 13, 2023.
In their statement, Binance.US assured customers that they maintain a 1:1 reserve for all users and emphasized that all operations are currently functioning without disruptions. However, the exchange noted that USD trading pairs would be suspended in the coming week, and any USD balances held in reserve may be converted to stablecoins after June 15.
The notice also mentioned the possibility of delays for ACH transfers in USD, which could be attributed to weekend bank closures and increased transaction volumes. Binance.US had previously announced the delisting of certain trading pairs.
In response to the SEC lawsuit, Binance.US described the claims made by the agency as baseless and criticized its aggressive and unjustified tactics. The exchange has also faced the threat of an asset freeze, adding to the challenges it currently faces.
Binance.US has had a turbulent history, including the mysterious disappearance of CEO Catherine Coley and the resignation of another CEO, Brian Brooks, shortly after joining the company. Brooks provided testimony to the SEC that raised questions about the true independence of the exchange.
Meanwhile, the native token of Binance, BNB, has experienced a decline in value, falling from over $308 to around $259 in the past week.
As Binance.US navigates these legal challenges, it remains committed to maintaining transparency and meeting customer demands. The crypto industry continues to face regulatory scrutiny, underscoring the need for compliance and reliable platforms that can withstand such pressures.
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