Crypto-Friendly Banks Fail, Leaving Binance US Scrambling
Previously, Binance.US relied on either Signature Bank or Silvergate Capital for deposits, as both were considered crypto-friendly banks. However, with the failure of both banks, Binance.US is now urgently seeking a new banking partner.
Binance U.S. Turns to Intermediary to Store Funds
Binance U.S. is currently using at least one intermediary to hold its customers' funds, which could result in slower transactions due to the involvement of a third party.
Reluctant Banks Cite Regulatory Risks
Attempts to establish relationships with Cross River Bank and Customers Bancorp have yet to be successful, as banks are hesitant to partner with Binance U.S. due to concerns over regulatory risk.
Binance U.S. Continues Working with Multiple U.S. Banking Partners
Despite these challenges, a Binance U.S. spokesperson stated they are working with multiple U.S.-based banking and payment providers, onboarding new partners, and upgrading internal systems for a more stable fiat platform and additional services.
CFTC Lawsuit and Investor Withdrawals Impact Binance
Last month, the U.S. Commodity Futures Trading Commission (CFTC) sued Binance, its CEO, and former top compliance executive, accusing them of operating an illegal exchange and a sham compliance program. Following the lawsuit, investors withdrew $1.6 billion from Binance.