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Binance.US warns customers of further limitations as the court's 13-day timeline closes in

  • Binance.US has warned customers that its banking partners would pause USD withdrawals soon.
  • The announcement came after the exchange worked to restore the option, asking users to convert USD to stablecoins.
  • Judge Amy Jackson had given a 13-day restraining order against Binance Global officials to access internal systems and controls.

Binance.US solved the delayed US dollar withdrawals option, a hiccup that the US Securities and Exchange Commission (SEC) sued Binance and CEO Changpeng Zhao and had their assets frozen. In a June 17 development, the court allowed the exchange to resume US operations but with conditions, but banking partners had already fled when the exchange suspended USD deposits.

Also Read: Binance.US to suspend US Dollar deposits after SEC motion to freeze assets

Binance.US warns users of further limitations

Binance.US lost most of its banking partners on June 13, four days after the exchange suspended USD deposits. At the time, the exchange attributed the move to “aggressive and intimidating tactics employed by the SEC.” The exchange had also forewarned customers of expected downtime and delays, saying:

Any downtime in processing withdrawals may be the result of elevated volumes and weekend bank closures.

In a recent development, the exchange resumed USD withdrawals but forewarned of an impending suspension. Also, most USD advanced trading pairs will be removed, and new Tether (USDT) advanced trading pairs will be offered.

Efforts are underway to identify new partners, but the exchange has urged users to switch their USD holdings to stablecoins. Notably, the platform would automatically convert the dollars to USDT stablecoin at a later date, but only for those who fail to make conversions on time.

The assertions came amid complaints of delayed or stuck withdrawal requestions, but Binance..US has been forthright, asserting that everything would be sorted in the next “five business days.” Meanwhile, users that cited filed withdrawals are asked to resubmit the applications.

Binance.US 13-day window closing

Binance.US gained consent from the court to resume US operations after Judge Amy Bermant Jackson rejected the SEC’s application for a temporary restraining order against the exchange’s assets. As part of the deal, the court determined that only Binance.US employees would have access to customer funds on the US-based crypto exchange, not Binance.com. Specifically, Binance Global officials “would not be allowed access to private keys of all wallets, including cold and hot wallets, hardware, and software.” Moreover, they would not be accessible to the US subsidiary’s internal systems and controls for the next 13 days beginning June 17.

With barely a week to the last day, market participants wait to see what's next as the lawsuit continues with Binance bringing in an all-star lawyer in its defense. So far, their advocacy has boded well for the exchange, inspiring hope for Binance Coin (BNB), exchanging hands for $242.01 at the time of writing, a weekly rise of 3% despite a volatile market.

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Lockridge Okoth

Lockridge is a believer in the transformative power of crypto and the blockchain industry.

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