Binance customers represented by entity, citing inadequate representation

A third-party entity named "Eeon" has stepped guardant to intervene successful the case, representing the interests of Binance's customers regarding the suit filed by the United States Securities and Exchange Commission (SEC) against Binance.

As stated successful the filing with the District Court for the District of Columbia, Eeon claims that the SEC and Binance's attorneys person failed to sufficiently correspond the interests of Binance's customers, starring Eeon to question practice for them.

In the filing, Eeon asserted, 

"We are the due parties progressive successful this case, arsenic the Court identified america arsenic 'Customers' successful its Order dated June 17, 2023. We are not mean customers; rather, we are stakeholders, investors and owners of cryptocurrency held by Binance and its subsidiaries. We firmly judge that our interests were not adequately considered."

Eeon contends that crypto coins should beryllium deemed commodities, not securities, arsenic they are predominantly utilized for idiosyncratic and household usage alternatively than commercialized purposes. Additionally, Eeon highlights the lack of circumstantial regulations for this emerging commodity category, which consequently limits the SEC's jurisdiction implicit cryptocurrencies.

Eeon claims Binance controls customers' crypto assets by blocking entree and withdrawals without due notice. They reason that the SEC's actions worsened the concern for investors alternatively of safeguarding their interests, accusing the SEC of wrongly accusing customers of wealth laundering. Eeon requests a tribunal bid to assistance customers entree to their frozen assets connected Binance platforms.

Screenshot of the tribunal filing.  Source: Court Listener

Additionally, Eeon argues that offshore money transfers are a communal and accepted practice, chiseled from wealth laundering. Various entities similar e-commerce platforms, freelance services, consulting firms, tiny export companies and question agencies routinely enactment successful planetary wealth transfers without being associated with wealth laundering activities.

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

In its counterclaim, Eeon seeks compensation from some Binance and the US SEC, equivalent to 20% of the regular worth of withheld funds per customer, totaling $1000 per day. Additionally, some Binance and the US SEC would beryllium arsenic liable for paying penalties, with $500 assigned to the US SEC and $500 allocated to Binance and its subsidiaries.

Cointelegraph has reached retired to Binance for much accusation connected this lawsuit but is yet to person feedback astatine the clip of this publication.

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