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Binance.US Suspends USD Deposits and Warns About A Pause in Fiat Withdrawal Amidst a Battle With SEC

Binance.US has stepped to Twitter to announce the US dollar deposit suspension. Further, they have informed their customers about a pause to fiat (USD) withdrawal channels, coming soon by June 13. The platform claims that these harsh steps have been taken amidst the battle with SEC.

The Binance.US team claimed on June 9 about being forced to take this action against the “extremely aggressive and intimidating tactics” of the United States Securities and Exchange Commission (SEC). The firm decided to suspend USD deposits in an attempt to protect its customers and the platform.

They stated in their notification, “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.”

Challenges Brought by SEC Lawsuits

Binance.US has been triggered by the lawsuits filed by SEC and is now trying to defend itself. They stated in their tweet, “The SEC has taken to using extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry. Binance.US and our business partners have not been spared in the use of these tactics, which has created challenges for the banks with whom we work.”

What does the Notice by Binance Say?

SEC tactics have led the platform to suspend USD deposits, pause fiat withdrawals, and convert into a crypto-only exchange for the time being. It involves maintaining 1:1 reserves for all customer assets. Further, their notice warns customers to practice caution as any downtime in withdrawal processing may result from increased volumes and weekend bank shutdowns.

The Binance.US team confirmed that trading, staking, deposits, and withdrawals in crypto remain fully functional. While the US dollar deposits stand suspended as on June 9, the USD trading pairs will get delisted next week.

The firm stated that they’ll continue supporting Tether trading pairs. Also, if any USD remains on the exchange, it will get converted into a stablecoin for withdrawal on-chain.

Further, Binance.US delisted two BUSD and eight Bitcoin pairs on June 8. Additionally, they notified about paused OTC Trading portal services. BTC used to trade at a premium in early May on the US exchange.

Binance.US has reported the following on their struggles with SEC,

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


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Sakshi Gautam

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Sakshi Gautam
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