Binance.US revealed that its banking partners will initiate a "temporary break" in their relationship with the exchange in the near future. The SEC has caused both Binance and Changpeng Zhao to be subject to exceptional levels of examination after having accused them of 13 transgressions in a lawsuit this week. The SEC has applied for a provisional restraining order in light of worries about Zhao's possession of Binance-related companies.
Binance.US has declared that it will no longer permit its customers to use U.S. dollars for buying cryptocurrency on the platform starting June 13. This would hamper their business operations in the U.S. The exchange announced this news on Twitter, attributing it to the civil charges leveled against them by the U.S. Securities and Exchange Commission. As a precautionary step, customers are now unable to buy or deposit U.S. dollars.
The SEC's complaint was based on Changpeng Zhao's control over and ownership of Binance's U.S. and international arms. The Commission even sought an emergency motion for a restraining order to freeze the U.S. dollars on the exchange. Although clients wouldn't lose their money, they won't be able to withdraw it unless they convert it to a stablecoin like tether first.
The SEC's case has obviously become too big to ignore, as the banking partners of Binance have chosen to sever ties with the exchange. These banking partners have previously processed billions of dollars in transactions for the U.S. exchange. It is not clear which banking partners Binance is still associated with.
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