June 11, 2023

Binance US Asks Users To Withdraw USD Balances before June 13

Binance vs US SEC

Binance vs US SEC

Binance US asked its users to withdraw their USD deposits by June 13, as the deposits and withdrawals will be suspended following the US authorities’ lawsuit against the leading crypto exchange. 

The US Securities and Exchange Commission (SEC) accused Binance during the past week of unregistered securities and acting as an unregistered securities broker among other charges. 

In a press release, Binance said its suspension of the USD withdrawals and deposits comes as a part of its efforts to protect its customers and platform in terms of the US SEC’s use of “extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry.”

Binance pointed out that it would delist USD pairs such as BUSD on its platform, noting it will keep supporting stablecoin pairs such as USDT. 

According to the crypto exchange, any USD balances remaining on the platform after June 13 may be converted to stablecoin that could be withdrawn on-chain as Binance.US will become a crypto-only exchange.

It also stressed that cryptocurrency services would remain fully operational, including crypto trading, staking, deposits, and withdrawals.

“While we remain open to a productive compromise that enables a thriving digital asset marketplace in America, https://Binance.US will continue to vigorously defend ourselves, our customers, and industry against the meritless attacks of the SEC,” Binance added. 

Cointelegraph conducted a report analyzing the actions of the US SEC in the six months before the collapse of FTX and the six months after the FTX collapse. The report found that in the six months before the collapse of FTX, the SEC took only six enforcement actions in the crypto space.

While, in the six months following the FTX bankruptcy, the SEC’s enforcement actions recorded at least 17, with an increase of 183% from the preceding period.

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