A recent lawsuit filed by the United States Securities and Exchange Commission (SEC) against crypto exchange Binance has taken an interesting turn. A third-party entity called Eeon has now intervened in the case, claiming that the SEC and Binance’s attorneys have not adequately represented the interests of the exchange’s customers.
In the filing with the United States District Court for the District of Columbia, Eeon argues that it should be the appropriate party involved in the case. This is because the court previously identified them as “Customers” in an order dated June 17, 2023. Eeon states that they are not just ordinary customers; they are stakeholders, investors, and owners of cryptocurrency held by Binance and its subsidiaries. Eeon firmly believes that their interests were not adequately considered in the SEC’s lawsuit.
Eeon’s main argument is that cryptocurrencies should be classified as commodities rather than securities. They point out that cryptocurrencies are primarily used for personal and household purposes, rather than commercial activities. Eeon further emphasizes the lack of specific regulations for cryptocurrencies, which, in turn, restricts the SEC’s jurisdiction over these assets.
Moreover, Eeon accuses Binance of controlling customers’ crypto assets by blocking access and withdrawals without proper notice. They contend that the SEC’s actions have worsened the situation for investors instead of protecting their interests. Eeon alleges that customers have been wrongly accused of money laundering. To rectify this, Eeon seeks a court order to grant customers access to their frozen assets on Binance platforms.
In addition, Eeon argues that offshore fund transfers are a common and accepted practice, distinct from money laundering. They provide examples of various entities such as e-commerce platforms, freelance services, consulting firms, small export companies, and travel agencies routinely participating in international money transfers without being associated with illicit activities.
In their counterclaim, Eeon requests compensation from both Binance and the SEC. They seek 20% of the daily value of withheld funds per customer, amounting to $1000 per day. Furthermore, Eeon proposes that Binance and the SEC should equally share the responsibility of paying penalties, with $500 assigned to each party.
Cointelegraph reached out to Binance for further information but has not received a response at the time of writing. This development in the lawsuit adds a new twist to the ongoing legal battle between Binance and the SEC. It remains to be seen how the court will address Eeon’s claim and its potential impact on the case.