Following a recent lawsuit filed by the SEC, Binance US has informed its users that it will temporarily halt all customer withdrawals and transition into an exclusively crypto-based exchange. The decision to do so is attributed to the intention of their banking partners to pause USD fiat channels. In their statement, Binance US assured customers that they currently maintain 1:1 reserves for all users and that all operations are functioning normally. They urged customers to withdraw their USD funds through bank transfers before June 13th, 2023. Additionally, the exchange announced the suspension of all USD trading pairs in the coming week, with the possibility of converting USD balances held in reserve to stablecoins after June 15th. The notice also mentioned potential delays in ACH transfers due to weekend bank closures and increased volumes. Binance US had previously stated its intention to delist certain trading pairs. Regarding the SEC lawsuit, Binance US described the claims as baseless and criticized these tactics as aggressive and unjustified. The exchange has also faced the threat of asset freezes. In any case, Binance US has had a turbulent history, with one CEO, Catherine Coley, disappearing from public view, and another CEO, Brian Brooks, resigning after a short tenure. Brooks previously provided testimony to the SEC that questioned the independence of the exchange.
