The U.S. subsidiary of Binance announced that it was stopping dollar deposits and giving customers until Tuesday to withdraw their dollar monies after the U.S. securities regulator requested that a court order the freezing of its assets,
Binance in a tweet posted on Thursday, US, Binance’s ostensibly independent partner, stated that its financial partners were getting ready to halt dollar withdrawal routes as early as June 13.
On Monday, the SEC filed a lawsuit against Binance, its CEO and founder Changpeng Zhao, and Binance.US’s operator, marking a major expansion of the government’s campaign against the sector. A day later, the SEC sued Coinbr, a significant US exchange.
Binance as part of its ambitions to switch to a “crypto-only” system, US stated in the tweeted customer notice that it would no longer accept dollar deposits.
It referred to the SEC’s lawsuit allegations as “unjustified” and vowed to “vigorously defend” its position.
In 13 accusations filed on Monday, the SEC claimed that Binance had engaged in a “web of deception” that included falsely inflating trading volumes, diverting customer cash, and failing to bar U.S. users from its platform.
Tuesday, the SEC requested that the U.S. assets of Binance be frozen by a federal court. According to Binance.US, the motion was “unwarranted” because it addressed SEC worries about the security of consumer funds.
The SEC stated that it had not been given “sufficient reassurance” that Binance.US’s operator, BAM Trading, controlled the client assets, as opposed to Zhao or Binance, who had publicly stated their intention to circumvent U.S. law.
According to the SEC, Zhao and Binance had “free reign” to manage the assets of Binance US. It said, “Without oversight or controls to guarantee that those assets are properly secured, they have exercised this control over U.S. investor assets.”
According to the SEC, US’s client assets comprise more over $2.2 billion in cryptocurrency and around $377 million in U.S. dollar bank accounts.