Binance.US set to be cut off from banking system after SEC suit

Binance.US set to be cut off from banking system after SEC suit

Binance.US is being cut off from its banking partners in the fallout from a US Securities and Exchange Commission lawsuit against the crypto exchange.

In a tweet of an email to customers, the platform said its payment and banking partners have signaled an intent to pause US dollar fiat channels as early as June 13.

That means “our ability to accept USD fiat deposits and process USD fiat withdrawals will be impacted,” the company said, while adding that it maintains 1:1 reserves for all customer assets.

Binance.US said it’s “suspending USD deposits and recurring buy orders today and beginning the transition to a crypto-only exchange.”

In a lawsuit Monday, the SEC accused Binance and its founder Changpeng ‘CZ’ Zhao of mishandling customer funds, misleading investors and regulators, and breaking securities rules.

The agency subsequently said it’s seeking to freeze Binance.US’s assets and protect customer funds, including through the repatriation of client investments held abroad.

Binance.US in the email to customers said the SEC’s allegations are “unjustified” and that “we will continue to vigorously defend ourselves.”

BNB, a crypto token native to Binance, fell about 2.5% as of 10:45 a.m. in Singapore on Friday, extending a recent period of underperformance of wider digital-asset markets.