Binance US Suspends USD Deposits Following SEC Lawsuit, Shifts to Crypto-Only Platform

Binance US has informed its users that U.S. dollar deposits have been suspended and USD withdrawals will no longer be processed. The crypto exchange has asked customers to withdraw dollars by June 13 as it transitions into a crypto-only trading platform. The move followed a lawsuit against the crypto exchange and several other Binance entities by the U.S. Securities and Exchange Commission (SEC).

Binance US Suspends Dollar Deposits, Withdrawals

Binance US made an announcement Thursday regarding the suspension of U.S. dollar deposits and withdrawals following an “aggressive” enforcement action taken by the U.S. Securities and Exchange Commission (SEC).

The securities watchdog filed charges against several entities on Monday, including Binance Holdings, which operates; its U.S.-based affiliate BAM Trading Services, which operates Binance US; and Binance CEO Changpeng Zhao (CZ). The regulator followed up with an emergency action application the next day, seeking a temporary restraining order to freeze assets held by Binance US. The SEC also filed charges against the Nasdaq-listed crypto exchange Coinbase on Tuesday.

“The SEC has taken to using extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry,” the official Twitter account for Binance US wrote Thursday, adding that the SEC’s action “has created challenges for the banks with whom we work.” The exchange continued:

In an effort to protect our customers and platform, today we are suspending USD deposits and notifying customers that our banking partners are preparing to pause fiat (USD) withdrawal channels as early as June 13, 2023. We encourage customers to take appropriate action with their USD.

In addition, Binance US informed customers that it will remove select BTC and BUSD advanced trading pairs. “We have also decided to streamline our buy, sell & convert offering and have paused our OTC trading portal,” the exchange noted.

The platform additionally clarified that it is transitioning into a crypto-only exchange, stating on its website:

Binance.US will become a crypto-only exchange. Please withdraw USD by June 13, 2023.

“Any USD balances remaining on the platform after June 15, 2023, may be converted to stablecoin that can be withdrawn on-chain,” Binance US noted, emphasizing that “Cryptocurrency services remain fully operational, including crypto trading, staking, deposits, and withdrawals.” Moreover, Binance US stressed that it maintains a 1:1 reserve for all customer assets.

In a letter to its users, Binance US stated that “the SEC has brought unjustified civil claims against our business, from which we will continue to vigorously defend ourselves, our customers, our partners, and industry.” The exchange similarly tweeted Thursday that it “will continue to vigorously defend ourselves, our customers, and industry against the meritless attacks of the SEC.”

What do you think about Binance US becoming a crypto-only trading platform? Let us know in the comments section below.

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