Binance halts US dollar deposits and withdrawals

Suspension comes after the SEC filed a lawsuit against the exchange alleging multiple violations of federal securities laws

Binance will stop dollar deposits and withdrawals from its US cryptocurrency exchange within days due to a government crackdown on the crypto industry.

In a statement Binance US told customers it would be barring all new deposits in dollars and said American banks would halt withdrawals as early as June 13.

The announcement comes after the US Securities and Exchange Commission (SEC) filed a lawsuit against the cryptocurrency exchange and its CEO Changpeng Zhao, alleging multiple violations of federal securities laws.

The SEC claims Binance's poor financial controls resulted in the diversion of customer funds, potentially for personal purposes. The suit alleges that Merit Peak Limited, previously linked to Zhao, had access to billions of US dollars of customer funds, while another Zhao-controlled entity, Sigma Chain, received nearly $200m from BAM Trading.

In a tweet, the exchange said: “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.”

Trading, deposits and withdrawals of other cryptocurrencies will remain operational on the exchange and only operate in the future as a “crypto-only exchange”.

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Written by David

Co-founder

David is co-founder of CryptoGamblingNews.com, and has worked in the crypto gambling space since 2015.

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