Binance.US to halt all fiat withdrawals ‘as early as June 13’

In the wake of a blistering lawsuit from the SEC, Binance.US notified users this evening that it would be pausing all customer withdrawals and transitioning, at least temporarily, to an all-crypto exchange.

Binance US attributed the decision to “banking partners [who] have signaled their intent to pause USD fiat channels.”

In a statement the exchange, operated by BAM Trading, said that it would be suspending all USD deposits as banking partners prepared to pause USD withdrawals ‘as early as June 13 2023.’

Binance.US noted in their statement that they maintain 1:1 reserves for all customers, and that all operations are currently functioning.

The exchange encouraged customers to withdraw USD via bank transfer by June 13, 2023.

The exchange noted that all USD trading pairs would be suspended next week, and that any USD balances held in reserve may be converted to stablecoins after June 15.

The notice also stated that ACH transfers in US dollars would potentially be subject to delays, which it suggested may be due to the weekend bank closures and elevated volumes.

Binance US had already noted that it would delist some trading pairs.

In the notice, Binance US described the SEC lawsuit as making “baseless claims” and described the agency’s tactics as “aggressive” and “unjustified.”

The exchange has also been threatened with an asset freeze.

Binance.US has had a checkered history, with one CEO — Catherine Coley — disappearing from public view, and another resigning after an extremely short tenure at the business. The latter, Brian Brooks, provided testimony to the SEC that questioned the nominal independence of the exchange.

BNB, the native token of Binance, has fallen from just over $308 to around $259 over the past week, at the time of writing.

---

Get the news in your inbox. Explore Blockworks newsletters:

• The Breakdown: Decoding crypto and the markets. Daily.
• Empire: Crypto news and analysis to start your day.
• Forward Guidance: The intersection of crypto, macro and policy.
• 0xResearch: Alpha directly in your inbox.
• Lightspeed: All things Solana.
• The Drop: Apps, games, memes and more.
• Supply Shock: Bitcoin, bitcoin, bitcoin.