Banks cut fiat on-ramps for Binance US, dollar deposits suspended

Crypto exchange Binance US has informed users that US dollar deposits will be suspended and that banks providing fiat (dollar) on-ramps will sever services as early as June 13, just a few days after the Securities and Exchange Commission (SEC) slapped Binance and its chief exec with a lawsuit.

In a tweet on June 9, Binance’s US arm warned customers they should withdraw their USD by bank transfer by June 13. “To ensure a timely USD withdrawal process, we are suspending USD deposits and recurring buy order today,” it said, and assured users that its cryptocurrency services “remain fully operational.”

It remains unclear which banking partners Binance US has, however publicly known partnerships include Axos Bank, Cross River Bank, and failed banks Silvergate, Signature, and Silicon Valley Bank.

Binance US slams SEC in tweet as banks get spooked

Binance US added that it plans to transition to a crypto-only exchange and reiterated that it maintains “1:1 reserves for all customer assets.”

The crypto exchange, suspected to have been founded by Binance to distract US regulators from focusing attention on its global entity, described the SEC’s lawsuit as “unjustified civil claims” in its 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. 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

“As you may be aware, Binance US, alongside other companies in our industry, has become to target of aggressive tactics by the [SEC],” it stated. “The SEC has brought unjustified civil claims against our business, from which we will continue to vigorously defend ourselves…”

US dollar deposits have been suspended as of June 9. USD trading pairs will be delisted next week — but users can still convert USD into a stablecoin and withdraw it on-chain.

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