Lawyer Asks SEC and FINRA to Investigate Binance

Image Credits: CryptoAvanza

A lawyer who specializes in cryptocurrency issues, John Reed Stark, has asked the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) to send their experts to investigate Binance. He made this request in response to Binance’s decision to temporarily halt withdrawals of Euros.

On August 20, 2023, Binance’s customer support on their social media platform, previously known as Twitter, informed a user that they had suspended the ability to withdraw and deposit Euros using the Single Euro Payments Area (SEPA) system. Binance explained that their provider for Euro transactions was no longer supporting this service, making it impossible for customers to take out Euros from their trading accounts.

The customer support team at Binance stated, “We don’t have a specific timeline for when SEPA transfers will be restored. In the meantime, we suggest using alternative methods for buying and selling cryptocurrency.” This announcement caused a lot of worry and fear among users of the cryptocurrency exchange. However, the tweet was later deleted due to the strong negative reaction from the cryptocurrency community.

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John Stark took to Twitter to express his belief that the proper authorities should look into the recent events at Binance and consider involving the SEC’s Enforcement Division or the U.S. Department of Justice. He did acknowledge that investigating on-site could be difficult because Binance is not a registered entity. He also warned people to be cautious about using Binance while this withdrawal suspension is in effect.

Over the past day, the BNB token, which is associated with Binance, experienced a significant drop in value. It lost more than 4% of its worth, reaching its lowest point in a year at $208. Currently, the value has slightly rebounded and is trading at around $210.7. This drop in value led to the sale of positions worth almost a million dollars since the day before.