Banks Fleeing Binance.US as SEC Suit Looms

• The SEC has filed a civil lawsuit against Binance, claiming that it is the real beneficiary of Binance.US.
• Banks have started to distance themselves from the potential fallout of the lawsuit.
• Binance expressed disappointment with the SEC’s decision to choose litigation over dialogue.

SEC Filing Civil Lawsuit Against Binance

The U.S. Securities and Exchange Commission (SEC) has recently filed a civil lawsuit against cryptocurrency exchange Binance, claiming that it is the real beneficiary of its United States arm, Binance.US. This legal battle between the two parties has caused banks to become increasingly wary and start distancing themselves from any potential fallout due to this dispute.

Binance Responds

In response to this lawsuit, Binance expressed its disappointment with the SEC for choosing litigation over dialogue in an attempt to resolve their investigations amicably. They stated that “we have engaged in extensive good-faith discussions to reach a negotiated settlement” but unfortunately, those efforts were abandoned in favor of pursuing a court battle instead.

Banks React

As bankers had already been spooked by other recent fiascos such as Silvergate and Signature bank scandals, they are now taking steps to secure their balance sheets by distancing themselves from this situation between Binance and the SEC. This wariness has spread even outside of the crypto industry as companies with exposure to this case are looking for ways protect their assets from any potential fallout should things not go according to plan during legal proceedings between these two entities.

Other Crypto Exchanges Chime In

Other crypto exchanges such as Coinbase and Kraken had similar statements regarding being let down by the SEC’s refusal to enter into constructive dialogue before initiating litigation against them as well as other exchanges in order to resolve investigations involving these companies amicably rather than through legal action alone.