It filed similar charges against the world's other top cryptocurrency exchange, Coinbase, nearly simultaneously.īut Binance and its CEO, Changpeng Zhao, face additional charges of diverting customer funds - concealing the fact that it was commingling billions of dollars in investor assets and sending them to a third party that Zhao also owned.Īs a result, the SEC asked that the assets of Binance's U.S. law by operating as an unregistered securities exchange. Under a consent order filed Saturday, the defendants in the June 5 lawsuit agreed to repatriate all assets held for the benefit of Binance's U.S. Securities and Exchange Commission and Binance have reached an agreement in court that lets the world's largest cryptocurrency exchange continue to operate in the United States as it battles SEC fraud charges. Despite the current difficulties, the exchange remains committed to providing a safe and reliable platform for its clients to trade cryptocurrencies.The U.S.
In order to address these challenges, Binance.US is actively seeking new banking and payment service providers while upgrading its internal systems to create a more stable fiat platform and offer additional services to its customers. are requesting more documentation and information about how they monitor clients’ transactions. The few banks still working with crypto firms in the U.K. “We work with multiple U.S.-based banking and payment providers and continue to onboard new partners while upgrading our internal systems to create a more stable fiat platform and offer additional services,” a spokesman for Binance.US told the WSJ.īinance.US is operating in a similar environment to that which crypto firms are experiencing in the United Kingdom, where banks are moving away from accepting clients from the crypto sector. A spokesperson for Prime Trust stated that all funds received from clients are stored through its banking partners. In a recent status update, the exchange said that it "was transitioning to new banking and payment service providers over the next several weeks," adding that some USD deposit services would be temporarily impacted during the transition.Ĭurrently, Binance.US is holding customer funds via financial technology firm Prime Trust.
As a result, Binance.US customers have been affected by the lack of a direct bank. The cryptocurrency exchange has been the focus of a CFTC investigation since 2021.īinance.US needs a bank to directly hold its clients' US dollars, but recent attempts to establish direct banking relationships with banks, such as Cross River Bank and Customers Bancorp, have failed. Commodity Futures Trading Commission (CFTC) sued Binance Holdings and its CEO Changpeng “CZ” Zhao for allegedly trading violations. The regulatory crackdown on banks with crypto clients has also contributed to Binance.US's struggles. According to a report from the Wall Street Journal on April 8, the recent failures of Silvergate and Signature Bank have left Binance.US without banking services, forcing it to rely on middleman banks to store funds on its behalf. Binance.US, the United States arm of the global cryptocurrency exchange, has been struggling to find a bank partner to serve as a fiat on-ramp and off-ramp for its clients in the country.
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