Key takeaways:
- In the US SEC case brought against Binance, a firm named “Eeon” submitted a motion to intervene.
- Eeon alleges that Binance restricts access to and withdrawals from its users’ crypto assets by doing so without enough notice.
The United States Securities and Exchange Commission (SEC) has sued Binance, and a third-party organization called “Eeon” has intervened in the dispute to defend the rights of Binance’s clients.
Eeon alleges that the SEC and Binance’s attorneys have not adequately represented the interests of Binance’s consumers, which is what prompted Eeon to seek representation for them, as stated in the petition with the District Court for the District of Columbia. In the document, Eeon claimed:
“We are the appropriate parties involved in this case, as the Court identified us as ‘Customers’ in its Order dated June 17, 2023. We are not ordinary customers; rather, we are stakeholders, investors and owners of cryptocurrency held by Binance and its subsidiaries.”
Eeon argues that because cryptocurrency is mainly used for domestic and private consumption rather than business, it should be classified as a commodity rather than a security. Eeon further emphasizes the absence of particular laws for this new class of commodities, which consequently limits the SEC’s authority over cryptocurrencies.
Eeon alleges that Binance restricts access to and withdrawals from its users’ crypto assets by doing so without enough notice. They contend that rather than protecting investors’ interests, the SEC’s efforts aggravated the problem and accused the agency of falsely accusing clients of money laundering. To provide consumers access to their frozen assets on Binance platforms, Eeon is asking for a court ruling.
Furthermore, Eeon contends that offshore finance transfers are not money laundering but a regular and accepted practice. E-commerce platforms, independent contractors, consulting firms, small export businesses, and travel agencies are just a few examples of organizations that regularly participate in international money transfers without being connected to money laundering activities. Eeon stated:
“The Court speaks as to the holding of our funds and wallets, and how Binance US, was comingling funds from the United States with that of its overseas affiliates. Now although there was nothing illegal in and of itself with such activities, the moving of funds offshore is a common practice and the practice is not considered money-laundering.”
“Eeon” claims to have 30 years of courtroom expertise and mentions a 2018 court petition in which the US Federal Reserve System was the target.
In its counterclaim, “Eeon” demands that Binance and the US SEC each pay $1000 per day per customer, or 20% of the daily value of the monies that were withheld, compounded per-diem. Additionally, Binance and the US SEC will each be required to pay $500 in fines for their respective conduct, with $500 coming from Binance and its subsidiaries.
Customers have traditionally held long-term investments in the exchange and cryptocurrencies. The US SEC launched a lawsuit against Binance and Binance.US without providing any justification and violating the obvious crypto legislation, which has affected consumers’ day-to-day operations. Additionally, it states that the court might have frozen up to 50% of cryptocurrency holdings, allowing clients to retain some of their property.
