Binance us coins8/12/2023 ![]() ![]() SIPC is a nonprofit organization created by federal law in 1970. The lawsuits aren’t singling out “bad apples” but are regulator reactions to “systemic” weak spots in the new world of crypto investing, he said.Ĭoverage from the Securities Investor Protection Corporation is a good example, he said. Hays emphasized he wasn’t giving investment advice, but people with money and assets on the exchanges “should think long and hard” on the question of safety. Larger cash balances go to money market mutual funds, which are conservative and highly liquid, Coinbase said.Ĭoinbase CEO Brian Armstrong has said the lawsuit against his company is “ very different from others out there” because it’s just focused on the definitions of what counts as a security.īinance.US said it has worked with custodians to make sure dollar deposits are held in accounts at FDIC-insured banks. Coinbase keeps its client cash in in Federal Deposit Insurance Corporation-insured banks, which protects $250,000 per depositor, per account, according to the company’s website. “Customer assets are safe and secure at Coinbase,” a spokesperson told MarketWatch on Tuesday.Īt Binance.US, “customer assets are secure, appropriately segregated, and available to customers,” lawyers said in Monday court filings.Ĭoinbase and Binance.US said they have 1:1 reserves for customer assets. ![]() It’s a point they’ve made in public statements and court papers. “What people don’t realize, when they do that, because these exchanges are often either unregulated or poorly regulated right now – and in some cases are resisting compliance – they don’t have some to the same protections that ordinary investors do when it comes to their funds.” Are customer assets safe at Coinbase and Binance? “It’s real easy to get into crypto,” said Mark Hays, senior policy analyst at Americans For Financial Reform, a coalition in support of tighter regulation in the budding space. FTX is part of a scarred list of crypto lenders and brokerages in bankruptcy. Its founder, Sam Bankman-Fried, is facing criminal charges and has pleaded not guilty. Many crypto investors are young, just building their wealth and already seeing warning flags for cryptocurrency.įTX was a high-profile exchange that devolved into bankruptcy proceedings last year. While the judge decides how to rule on Binance.US assets, crypto investors may be nervous about how to be in control of their assets. The SEC is also suing CoinbaseĪlleging the publicly-traded company is also operating an unregistered securities exchange, brokerage and clearing agency. ![]() The Binance lawsuit is part of the SEC’s recent one-two punch at the crypto industry. The SEC motion is in front of Washington D.C. “Until we secure more stable banking partners, Binance.US will remain a crypto-only exchange – at least for a time,” Binance.US said in an announcement last week. The platform’s ability to accept deposits and process withdrawals “will be impacted,” it said on Twitter. Payment and banking partners are prepared to pause the avenues for people to pull dollars from the exchange as soon as Tuesday. dollar deposits and recurring buy orders as of last Friday. The lawyers noted in court papers that customers’ crypto assets and fiat currency were secure.īinance.US already said it will be pausing U.S. The asset freeze is “draconian and unduly burdensome,” Binance.US lawyers said, adding that the harm would fall on Binance.US customers while effectively putting the platform and related holding companies out of business. It’s a legal bid to maintain the status quo while the litigation plays out, SEC lawyers said in court filings. Now the regulator is asking a federal judge to push a pause button that would freeze the assets tied to Binance.US, the company’s exchange for U.S. The SEC has alleged that Binance, the world’s largest cryptocurrency exchange, mishandled customer funds and acted as an unregistered securities exchange. ![]()
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