Binance’s U.S. subsidiary, Binance.US, has stopped dollar withdrawals on its platform, according to the company’s latest terms released Oct.16.
However, this doesn’t mean that there are no methods available to withdraw your funds. Binance said users who wish to withdraw U.S. dollar funds from their account may do so by “converting U.S. dollar funds to stablecoin or other digital assets, which can subsequently be withdrawn.”
“We updated the deposit insurance language in our Terms in accordance with guidance received from the Federal Deposit Insurance Corporation (FDIC),” the email also added.
Binance US seizes USD.
Don’t worry you can buy Tethers printed out of thin air or shitcoins. pic.twitter.com/BPh7SY3qTM
— Bitfinex'ed 🔥🐧 Κασσάνδρα 🏺 (@Bitfinexed) October 17, 2023
In early June, Binance temporarily suspended fiat withdrawals, and they also anticipated that USD balances remaining after June 15 might be converted into stablecoins. The viability of its U.S. branch is now in doubt due to the SEC’s accusations, which claim that Binance falsified its trading figures and mishandled client funds. The exchange refutes these allegations.
“In order to safeguard our customers and our platform, we are temporarily suspending USD deposits today and informing our customers that our banking partners are preparing to pause fiat (USD) withdrawal services as early as June 13, 2023,” Binance communicated via X. “We advise our customers to take necessary steps with their USD holdings.”
The recent news also follows a legal action by the SEC in June, where Binance, its CEO and founder Changpeng Zhao, and the operations of Binance.US were sued.
The SEC has taken to using extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry. https://t.co/AZwoBOgsqS and our business partners have not been spared in the use of these tactics, which has created… pic.twitter.com/rlIe6swIoY
— Binance.US 🇺🇸 (@BinanceUS) June 9, 2023
The SEC leveled 13 charges, accusing Binance of participating in a “complex network of deceit,” inflating trading volumes artificially, and diverting customer funds. Binance has repeatedly asserted through social media that the SEC’s strategies and approach to regulating the industry are both aggressive and misinformed.
Image: Gabby Jones – Bloomberg