- June 11, 2023
- Posted by: [email protected]
- Category:
At the time of publication, stablecoins like USDT and USDC were being traded at prices 3 to 4% higher than their intended value. Several cryptocurrencies listed on Binance.US, the American arm of the cryptocurrency exchange Binance, started deviating from their fair market value and were being traded at premiums. For example, Bitcoin and Ether were priced at $27,445 and $1,911, respectively, while their average prices on CoinMarketCap were $26,490 and $1,850.
Concurrently, stablecoins such as Tether (USDT) and USD Coin (USDC) exceeded their par values and were being traded at $1.03 and $1.04, respectively. On the same day, Binance.US took several actions, including removing multiple trading pairs based on USDT, pausing its over-the-counter trading portal, and imposing a maximum trade limit of $10,000 on its buy, sell, and convert services.
Furthermore, according to information provided on its support page, Binance.US temporarily disabled wire deposits, while withdrawals remained unaffected. However, the exchange stated that certain U.S. dollar-based payment methods, including debit cards, Apple Pay, and Google Pay, were temporarily available to some users due to a “channel switching” process.
Apart from these financial concerns, investors were also unsettled by an emergency motion filed by the U.S. Securities and Exchange Commission (SEC) to freeze Binance.US’ assets and repatriate funds held by U.S. customers. In response, Binance staff assured users that their assets were safe and secure and that the platform was fully operational, with deposits and withdrawals functioning normally.
Earlier on June 5, the SEC filed a lawsuit against Binance, alleging that the exchange was operating in the U.S. without proper registration and selling unregistered securities. The commission also accused Binance of mixing and redirecting investors’ funds. Changpeng Zhao, the CEO of Binance, received a civil summons, requiring him to respond to the allegations.
