Binance.US Halts USD Deposits as Banking Partners Quit Due to SEC Lawsuit
Binance.US notifies its consumers about the suspension of USD deposits. The firm has also informed the stakeholders in the region about the suspension of banking services starting next week.
The notification reads that the banking partners of the firm are temporarily revoked on account of the restraining order hearing pending in the federal court. This order involves the trading affiliate of Binance in the USA.
The new changes have been part and parcel of the lawsuit filed by the Securities and Exchange Commission against Binance and its CEO. SEC officials have set their eyes on taking over the assets of Binance.US.
Users can only Make Withdrawals
While the lawsuit is in session, SEC released a temporary restraining order over Binance.US such that the consumers can only make withdrawals. All other trades are currently halted on the crypto exchange.
Binance.US has told the media that the firm has started to face issues regarding banking affiliations in the country. The official Twitter account of Binance.US has posted that the firm has decided to stop all USD-based deposits to protect its interests.
At the same time, the firm has maintained that these changes are made on account of the suspension of banking services. As per the tweet, banking partners of Binance.US are set to revoke their fiat withdrawals as early as 13th June.
The firm has also directed consumers to take careful action to protect their USD reserves. The firm has also informed its clients that it has started to dismantle USD/crypto pairs such as Bitcoin and USD.
Meanwhile, stablecoin and crypto pairs are still going to remain operational on the platform. At the same time, Binance has asked the consumers to withdraw their USD reserves before the 13th of this month if they wish to use the banking services options.
Binance.US claims that it has shifted its focus to crypto products only for the time being. The exchange platform has also stated that it intends to maintain a 1:1 reserve ratio for all customer reserves that are present on the platform.
Meanwhile, Binance.US has shared that consumers should collect their fiat reserves out of the exchange through banking channels before 13th June. However, consumers are notified about some difficulties in withdrawals on account of soaring volumes and weekend bank closures.
The firm has also talked about ACH withdrawals that may take longer to process anticipating various days. Meanwhile, Binance.US has also maintained that it plans to remove around 10 trading pairs from the network on account of an SEC lawsuit.
The firm has kept posting updates about the latest changes taking place on the exchange while the SEC lawsuit is underway.
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