Binance US has suspended all deposits in USD. This was made known to the exchange’s customers via a press release on its website on June 9. According to the update, the measure became necessary in view of what the company termed the SEC’s aggressive and intimidating tactics against American digital asset customers.
Partner banks will discontinue USD transactions
The release said,
“The SEC has taken to using extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry. Binance.“The US and our business partners have not been spared in the use of these tactics, which has created challenges for the banks with whom we work.”
It added that the partnering banks of the exchange plan to stop all transactions in USD by June 13 and encouraged Binance US users to take appropriate actions regarding their funds.
Putting the customers first
The statement from the exchange said that its priority has always been its customers as it sought to transition to a crypto-only exchange. It acknowledged the challenges it has faced in its operations in the country.
The release hinted that the exchange is open to a compromise with the SEC, which filed a lawsuit against it on June 5, 2023. A day later, the regulator also sued Coinbase, the largest cryptocurrency exchange in the US.
CZ reacts to an allegation
In its suit against Binance, the SEC highlighted 13 charges against the exchange and its CEO, Changpeng Zhao. Binance responded that it would vigorously defend itself against the attack on the cryptocurrency industry by the US regulator. One of the allegations against Binance US said that the company redirected $12 billion in Binance US funds to an overseas firm owned by Changpeng Zhao, but in a swift rebuttal, the Binance CEO said,
“To the best of my knowledge, BinanceUS had, in total, roughly $2 billion in user funds. This number in USD equivalent fluctuates a little as crypto prices change. And declining as users withdraw due to recent news.”
CZ maintained that all user funds are accounted for within the Binance US platform and that if any funds were moved outside the United States, they were moved by the owners themselves.