The SEC sued Binance for securities violations on Monday.

Binance.US, a cryptocurrency exchange, is facing consequences following a lawsuit filed by the US Securities and Exchange Commission (SEC). The exchange has received notifications from its banking partners indicating a pause in US dollar fiat channels, affecting its ability to process USD fiat deposits and withdrawals.

Binance.US has therefore decided to suspend USD deposits and recurring buy orders, transitioning to a crypto-only exchange. (The Straits Times)

The crypto exchange has therefore advised customers to withdraw their USD via bank transfer (ACH) by June 13, 2023. Any USD balances remaining on the platform after June 15, 2023 may be converted to stablecoin that can be withdrawn on-chain.

As of next week, Binance.US will start delisting USD pairs, but will continue to support stablecoin pairs.

The market response includes pricing differentials emerging between Binance.US and Binance.com, as customers seek to sell and withdraw US dollars. BNB, Binance’s native token, experienced a 4.4% decline, while Bitcoin and Ether saw a 1% drop.

The SEC’s allegations, including mishandling customer funds and breaking securities rules, are deemed unjustified by Binance.US, which plans to vigorously defend itself.

The SEC has been expanding its crackdown on cryptocurrencies, targeting Binance and subsequently filing a lawsuit against Coinbase Global. Coinbase has rebutted the SEC’s claims and is prepared to pursue the legal battle to the Supreme Court.

Related Story: SEC Charges Binance And Its CEO Changpeng Zhao With Securities Violations