A third-party entity known as Eeon has intervened in the ongoing lawsuit filed by the United States Securities and Exchange Commission (SEC) against popular cryptocurrency exchange Binance. Eeon, as outlined in the filing with the United States District Court for the District of Columbia, claims that both the SEC and Binance’s attorneys have failed to adequately represent the interests of the exchange’s customers. As a result, Eeon is seeking to provide representation on behalf of these customers.
The filing by Eeon highlights their belief that they are the appropriate parties involved in this case, citing a court order dated June 17, 2023, which identified them as “Customers.” Eeon argues that they are not ordinary customers, but rather stakeholders, investors, and owners of cryptocurrency held by Binance and its subsidiaries. They firmly assert that their interests were not adequately taken into consideration.
Eeon’s main argument is that cryptocurrencies should be classified as commodities rather than securities. They believe that cryptocurrencies are primarily utilized for personal and household use rather than for commercial purposes. Additionally, Eeon points out the absence of specific regulations governing cryptocurrencies, which in turn limits the SEC’s jurisdiction over these assets.
Another crucial point made by Eeon is that Binance allegedly controls customers’ crypto assets by blocking access and withdrawals without proper notice. They claim that the SEC’s actions have worsened the situation for investors, rather than safeguarding their interests. Eeon accuses the SEC of unjustly accusing customers of money laundering. Therefore, Eeon requests a court order to grant customers access to their frozen assets on Binance platforms.
Eeon further argues that offshore fund transfers are common and accepted practices, distinct from money laundering activities. They provide examples of various entities, such as e-commerce platforms, freelance services, consulting firms, small export companies, and travel agencies that routinely participate in international money transfers without being associated with money laundering.
In their counterclaim, Eeon seeks compensation from both Binance and the SEC. They propose that the compensation be equivalent to 20% of the daily value of withheld funds per customer, totaling $1000 per day. Additionally, both Binance and the SEC would share the responsibility of paying penalties, with $500 assigned to each.
Cointelegraph has contacted Binance for more information regarding this matter but has yet to receive a response.
In conclusion, Eeon has intervened in the lawsuit against Binance, claiming that the SEC and Binance’s attorneys have failed to adequately represent the interests of the exchange’s customers. Eeon asserts that cryptocurrencies should be classified as commodities, and highlights the lack of specific regulations in this area. They argue that Binance controls customers’ assets and accuse the SEC of worsening the situation for investors. Eeon requests a court order to grant customers access to their frozen assets. In their counterclaim, Eeon seeks compensation from both Binance and the SEC.