Binance US announces USD deposits suspension, pauses fiat withdrawal channels
1 min read 09 Jun 2023, 08:40 AM ISTBinance.US has suspended USD deposits and warned customers that its banking partners are preparing to pause fiat (USD) withdrawal channels as early as June 13. This follows US financial regulators supporting a freeze on the cryptocurrency exchange's assets earlier in the day.
PremiumBinance.US on Thursday suspended USD deposits while notifying customers that their banking partners are preparing to pause fiat (USD) withdrawal channels as early as June 13. This came after the US financial regulators supported a freeze on the cryptocurrency exchange's assets earlier in the day, according to a report published by Reuters.
In a tweet of an email to customers, the crypto exchange company said, “Our ability to accept USD fiat deposits and process USD fiat withdrawals will be impacted. We maintain 1:1 reserves for all customer assets."
The U.S. Securities and Exchange Commission (SEC), in a lawsuit on Monday, accused Binance and its founder Changpeng ‘CZ’ Zhao of mishandling customer funds, misleading investors and regulators, and breaking securities rules, as per Bloomberg reports.
Subsequently, the SEC said it’s seeking to freeze Binance.US’s assets and protect customer funds, including through the repatriation of client investments held abroad.
“The allegations made by SEC are unjustified. We will continue to vigorously defend ourselves," Binance.US said in an email to its customers.
BNB, a crypto token native to Binance, fell about 2.5% as of 10:45 a.m. in Singapore on Friday, extending a recent period of underperformance of wider digital-asset markets.
Meanwhile, the agency on Thursday strongly rebutted criticism that the agency is trying to crush the crypto industry, and said many companies in the space had made a "calculated economic decision" to flout its rules.
The crypto industry has attacked Gary Gensler in recent days after the SEC sued two of the world's largest crypto exchanges, Coinbase and Binance, for allegedly breaking securities laws by failing to register their operations with the agency.
Crypto companies started out in a regulatory gray area, but the SEC under Gensler has steadily asserted its jurisdiction over the industry, arguing most tokens are securities and should be subject to the same disclosure rules.
(With inputs from agencies)
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