Binance.US Partner Banks Prepare To Stop Fiat Withdrawals As Early As June 13

Key Points:

• Binance.US announced it would suspend USD deposits and informed customers that its banking partners are preparing to suspend fiat withdrawals (USD) as early as June 13, 2023.
• In the face of accusations of mixing client funds from the SEC, the exchange claims to maintain a 1:1 reserve ratio for all client assets.
• The exchange likes to add any downtime during withdrawal processing that could result from high trading volumes and weekend bank closures.

Cryptocurrency exchange Binance.US has announced that it will stop sending USD and halting fiat (USD) withdrawals from its banking partners could begin on June 13.

Commenting on the SEC’s alleged money-mixing and shady dealings, Binance.US issued a statement on Twitter stating that the SEC had begun using extraordinarily aggressive and intimidating tactics when it launched an ideological campaign against the US digital asset industry against Binance.US and its business partners.

The influence of the SEC allegations has created challenges for the banks that the exchange does business with. Hence the measure of suspending USD deposits today and informing customers that our banking partners will prepare to stop fiat withdrawals (USD) on June 13, 2023. was launched to protect the platform and users’ assets.

Facing accusations of mixing client funds, the exchange claims to maintain 1:1 reserves for all client assets. Any downtime during withdrawal processing could result from increased trading volumes and weekend bank closures.

The above measure introduced will bring Binance.US to work when converting to a crypto-only exchange for some time. In addition, trading, staking, depositing, and withdrawing cryptocurrencies will still work normally.

Binance.US said that since 2019, its customers have been restricted from trading on Binance.com. However, the SEC alleges that Binance and Zhao “have circumvented their controls to secretly allow high-value US customers to continue trading on the Binance.com platform. “.

Among the products that Binance.US allegedly illegally provided to its US customers were commodity derivatives – which actually bet on the price of a cryptocurrency instead of buying it. Another US regulator filed a lawsuit in March, claiming that Binance has been providing these services since July 2019, despite not being registered with the derivatives market regulator.

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