The US Unit of Binance Halts Dollar Withdrawals Amid SEC Lawsuit
The US division of cryptocurrency exchange Binance has temporarily suspended the withdrawal of dollars by its clients, according to updated terms on its website. This comes after Binance.US had previously halted dollar deposits following a request from the US Securities and Exchange Commission (SEC) to freeze its assets. If customers wish to withdraw US dollar funds, they can convert them into stablecoins or other digital assets and then withdraw those instead.
The SEC filed a lawsuit against Binance, its CEO Changpeng Zhao, and Binance.US in June. The lawsuit accuses Binance of engaging in deceptive practices, inflating trading volumes, and misusing customer funds. Binance.US has not yet responded to requests for comment on the matter. The news was initially reported by Coindesk.
Hot Take: Binance.US Faces Further Challenges Amid SEC Lawsuit
Binance.US’s decision to halt dollar withdrawals adds another hurdle for the cryptocurrency exchange as it faces legal action from the SEC. With dollar deposits already suspended, this move limits users’ options for accessing their funds. By requiring customers to convert dollars into stablecoins or other digital assets before withdrawing, Binance.US may face criticism for creating additional complexity and potential risks for its users.
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