SEC Lawsuit Response Binance US Stops US Dollar Deposits And Withdrawals

JAKARTA - The Binance US crypto exchange announced on Thursday 8 June that it would suspend US dollar deposits and withdrawals in response to legal action taken by the US Securities and Exchange Commission (SEC).

On Monday, June 5, the SEC filed charges against several Binance entities, including Binance Holdings operating Binance.com, BAM Trading Services operating Binance US, and Binance CEO Changpeng Zhao (CZ). The regulator also filed a lawsuit against Coinbase, which was listed on Nasdaq, on Tuesday, June 6.

In a statement on the official Binance US Twitter account, they wrote that the SEC has used aggressive tactics and intimidated in pursuing an ideological campaign against the digital asset industry in America. They also mentioned that the SEC's actions have created challenges for the banks they work for.

As a precaution, Binance US announced a suspension of US dollar deposits and notified customers that their banking partners were preparing to discontinue fiat withdrawal channels (USD) on June 13, 2023.

In addition, Binance US also announced the abolition of certain trading pairs between Bitcoin (BTC) and Binance USD (BUSD). They also temporarily suspended the over-the-counter (OTC) trading portal. Binance US explained that they were transitioning to a special crypto exchange, and they appealed to customers to withdraw their US dollars before June 13, 2023.

Binance US confirms that their cryptocurrency services remain fully operational, including crypto trading, staking, deposits, and withdrawals. They guarantee that they will maintain 1:1 reserves for all customer assets.

In a letter to users, Binance US stated that they would continue to defend themselves in full enthusiasm against civil demands filed by the SEC, as well as protecting the interests of their customers, partners, and industry.

Binance US also stressed via a tweet on Thursday 8 June that it will continue to survive amid an unwarranted attack from the SEC.