- July 18, 2023
- Posted by: [email protected]
- Category:
In the ongoing legal battle between the United States Securities and Exchange Commission (SEC) and crypto exchange Binance, a third-party entity named Eeon has entered the scene seeking compensation. Eeon aims to represent the interests of Binance’s customers and has filed a claim with the United States District Court for the District of Columbia.
According to the filing, Eeon asserts that the SEC and Binance’s attorneys have failed to adequately protect the rights of the exchange’s customers. Eeon argues that as stakeholders, investors, and owners of cryptocurrency held by Binance and its subsidiaries, the customers deserve better representation. Eeon refers to a court order from June 17, 2023, that identified them as “Customers” in the case.
One of Eeon’s main contentions is that cryptocurrencies should be classified as commodities rather than securities. They argue that these digital assets are primarily used for personal and household purposes rather than commercial activities. Additionally, Eeon points out the lack of specific regulations governing cryptocurrencies, which limits the SEC’s jurisdiction over these assets.
Eeon further alleges that Binance exercises control over customers’ crypto assets by blocking access and withdrawals without proper notice. They claim that the SEC’s actions have exacerbated the situation for investors instead of protecting their interests. Eeon accuses the SEC of wrongly accusing customers of money laundering. Consequently, Eeon requests a court order to grant customers access to their frozen assets on the Binance platforms.
In its defense, Eeon argues that offshore fund transfers are a commonplace and accepted practice, distinct from money laundering. They cite various entities, such as e-commerce platforms, freelance services, consulting firms, small export companies, and travel agencies, that routinely engage in international money transfers without being associated with illicit activities.
As part of its counterclaim, Eeon seeks compensation from both Binance and the SEC. They propose a compensation equivalent to 20% of the daily value of the funds withheld per customer, totaling $1000 per day. Furthermore, Eeon suggests that both Binance and the SEC should share equal responsibility for paying penalties, with $500 assigned to each party.
Eeon’s intervention in the SEC’s lawsuit against Binance adds a new dimension to the legal proceedings. It underscores the importance of safeguarding the interests of customers and advocates for fair treatment and access to frozen assets. As the case progresses, the court will evaluate the claims made by Eeon and determine the appropriate course of action.
