The world’s largest cryptocurrency exchange Binance said
late Thursday it was halting US dollar deposits and encouraged clients to
withdraw their dollars by early next week, following charges leveled by the
government.
The US Securities and Exchange Commission on Monday charged
the crypto giant with securities law violations that it said amounted to “an
extensive web of deception” and “calculated evasion of the law.”
Binance is alleged to have permitted US residents to trade,
even though the platform is not registered in the United States as a securities
exchange. The case also alleges the firm misused customer funds.
As of Thursday, “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,” Binance.US said on Twitter.
“We are taking these proactive steps as we — for a time —
transition to a crypto-only exchange,” it added.
“We encourage customers to withdraw their USD via bank
transfer… by June 13,” the exchange said in a note addressed to clients.
The SEC filed a civil complaint listing 13 charges involving
platforms and other investment entities controlled by Binance founder Changpeng
Zhao.
The commission on Tuesday asked the courts to freeze assets
affiliated with the company and Zhao, who was once seen as the archrival of
disgraced crypto tycoon Sam Bankman-Fried.
Binance has criticized the SEC’s actions, saying Thursday
that it “will continue to vigorously defend ourselves, our customers, and
industry against the meritless attacks of the SEC.”
The case comes on the heels of charges in March against
Binance by another US regulator, the Commodities Futures and Exchange
Commission.
