Binance.US temporarily suspends fiat operations

Binance US has officially stated that users need to withdraw USD as soon as possible as SEC is using “extremely aggressive and intimidating tactics” against the exchange.

On Monday, the Securities and Exchange Commission (SEC) filed a lawsuit against Binance.US parent company Binance and its CEO Changpeng Zhao (CZ). SEC alleges several violations of securities laws, including claims that companies affiliated with CZ were able to access Binance.US users’ funds. On Tuesday, SEC filed a motion with the court to freeze Binance.US assets.

Related: SEC sues CZ and Binance for multiple securities violations

In a tweet late Tuesday, Binance.US stated:

User assets remain safe and secure and the platform continues to be fully operational with deposits and withdrawals functioning as normal.

In a tweet today, Binance stated that SEC’s “extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry” has caused Binance.US to jeopardize its relationships with the banks with which it works. As a result, Binance.US is temporarily switching to crypto-only exchange operations beginning June 13:

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.

The transition date wasn’t chosen at random; the day Binance.US users will no longer use USD is the same day a court hearing will take place regarding the possible freezing of Binance.US assets.

Binance.US added:

While we remain open to a productive compromise that enables a thriving digital asset marketplace in America, [we] will continue to vigorously defend ourselves, our customers, and industry against the meritless attacks of the SEC.

Binance’s BNB coin is valued at $262.73, down 15% over the past week. The token, which SEC had previously accused of being a security, continues to hold steady.