Binance and Coinbase are struggling in the USA
2 min readThe US Securities and Exchange Commission ignites the next regulatory fireworks against crypto. She is suing Coinbase and Binance, the world’s largest crypto exchanges. The accusation: violations of US laws – with far-reaching consequences. And the first consequences are already being felt.
SEC wants to freeze funds at Binance
Already in Monday’s indictment, the SEC called for the freezing of assets on Binance’s US platforms. Yesterday evening the authorities handed in another one emergency request in US Federal Court in Washington, DC. Securities regulators have accused Binance of mixing customer funds with company assets. The crypto exchange is said to have bought a yacht for eleven million US dollars from the funds. The move is intended to prevent Binance from withdrawing assets from US jurisdiction.
Binance.US is trying to attract customers to Twitter to calm down. Customer funds are safe, they say. The platform works, deposits and withdrawals are still possible.
This afternoon, the SEC filed a motion seeking a TRO and preliminary injunction against https://t.co/AZwoBOgsqS attempting to, amongst other things, freeze https://t.co/AZwoBOgsqS corporate assets. User assets remain safe and secure and the platform continues to be fully…
— Binance.US 🇺🇸 (@BinanceUS) June 6, 2023
Some in the crypto community are showing solidarity with the crypto exchange, while others are growing cautious. A Twitter user writes something like: “Paid out several times overnight. Transactions were quick and smooth… I will deposit again once the smoke clears.”
Withdrew multiple times tonight and transactions processed fast and without a hitch. Good luck with the fight! Will be depositing more back in for trades once the smoke clears. Have been treated well by Binance over the years and wish you Godspeed against this corrupt misguided…
— CryptoBudFox (@CryptoBudFox) June 7, 2023
US states are chasing Coinbase
The news about Binance was not even 24 hours old when the SEC followed up with a lawsuit against Coinbase. According to securities regulators, the leading US crypto exchange lacked the licenses to operate the trading platform. The authority also targeted the staking program.
Ten US states are now also firing against the crypto exchange’s staking program. An alliance of regional authorities published a so-called “Show Cause Order” – a legal order requiring a person or entity to explain themselves in court on a matter.
Coinbase has 28 days to justify why the authorities should not order the company to desist from the alleged sale of unregistered securities. The task force also emphasizes that the crypto exchange lacks any license to operate the staking platform.
An agreement in the period is rather unlikely. Also because the company of CEO Brian Armstrong has already announced that it intends to seek a legal exchange of blows with the regulators.
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