Banks abandon Binance to launch SEC legal battle

Following Monday’s announcement of lawsuits against Coinbase and Binance, the firms, both inside and outside the crypto industry, have begun to polarize.

The civil lawsuit filed against Binance — which the SEC claims is the actual beneficiary of Binance.US — has yet to begin. However, risk-averse companies have started taking steps to secure their balance sheets.

lack of communication

Echoing similar statements by Coinbase and Kraken executives, who accused the SEC of refusing to enter into constructive negotiations before initiating litigation, Binance where did it go They are disappointed that the agency has chosen a court battle instead of an amicable discussion.

“We have engaged in extensive good faith discussions to reach a negotiated settlement to resolve their investigation. But despite our efforts, with its complaint today, the SEC abandoned that process and instead took unilateral action.” and chose to litigate.

We’re disappointed by that choice. While we take SEC allegations seriously, they should not be the subject of SEC enforcement action, let alone on an emergency basis. We intend to vigorously defend our platform.

Unfortunately for Binance, the fact that they are now involved in litigation has proved too much for the skittish banking representatives, who have begun to “catch up” on their relationship with the crypto trading giant.

going crypto-to-crypto

In a statement published on Twitter by Binance.US, the platform announced that fiat withdrawals will be suspended from June 13 until a later date, due to banking partners pulling out of deals with them.

The SEC has employed extremely aggressive and intimidating tactics in waging an ideological campaign against the US digital asset industry. And our trading partners have not been spared in the use of these tactics, leading to… pic.twitter.com/rlIe6swIoY

– Binance.US 🇺🇸 (@BinanceUS) June 9, 2023

In theory, a crypto investor would not have to worry too much about this, as cash outs can still be done through stable coins transferred to a different exchange. However, cautious investors may still decide to exit the markets.

For the time being, this decision is only relevant to Binance.US. There has been no announcement regarding fiat withdrawals for Binance. However, it’s definitely not off the table. A Binance spokesperson did not indicate which banks they deal with, which have withdrawn their working relationships.

Largely because of the scope of their business, Binance has always been in business with several such organizations at the same time, including Cross River Bank, Exos Bank, and three recently defunct banks, leading to much back-and-forth. have been earlier this spring.