Home Bitcoin Entity representing Binance customers seeks compensation

Entity representing Binance customers seeks compensation

Entity representing Binance customers seeks compensation

A third-party entity called Eeon has intervened in the lawsuit filed by the United States Securities and Exchange Commission (SEC) against crypto exchange Binance.

As stated in the filing with the United States District Court for the District of Columbia, Eeon claims that the SEC and attorneys for Binance have failed to sufficiently represent the interests of the exchange’s customers, leading Eeon to seek representation for them.

In the filing, Eeon asserted:

“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. We firmly believe that our interests were not adequately considered.“

Eeon claims that cryptocurrencies should be deemed commodities, not securities, as they are predominantly utilized for personal and household use rather than commercial purposes. Additionally, Eeon highlights the absence of specific regulations for cryptocurrencies, which consequently limits the SEC’s jurisdiction over the assets.

Eeon claims Binance controls customers’ crypto assets by blocking access and withdrawals without proper notice. It argues that the SEC’s actions worsened the situation for investors instead of safeguarding their interests, accusing it of wrongly accusing customers of money laundering. Eeon requests a court order to grant customers access to their frozen assets on Binance platforms.

Screenshot of the court filing. Source: CourtListener

Additionally, Eeon argues that offshore fund transfers are a common and accepted practice, distinct from money laundering. Various entities like e-commerce platforms, freelance services, consulting firms, small export companies and travel agencies routinely participate in international money transfers without being associated with money laundering activities, it said.

Related: Binance headcount reduction hits 1,000 employees: Report

In its counterclaim, Eeon seeks compensation from Binance and the SEC, equivalent to 20% of the daily value of withheld funds per customer, totaling $1000 per day. Additionally, both Binance and the SEC would be equally responsible for paying penalties, with $500 assigned to each.

Cointelegraph has reached out to Binance for more information but is yet to receive a response.

Magazine: Binance warns on Maverick FOMO, Poly hack: Asia Express