Binance customers represented by entity, citing inadequate representation
A third-party entity named “Eeon” has actually advance to intervene in the case, representing the interests of Binances clients regarding the claim submitted by the United States Securities and Exchange Commission (SEC) against Binance.As stated in the filing with the District Court for the District of Columbia, Eeon declares that the SEC and Binances lawyers have stopped working to sufficiently represent the interests of Binances consumers, leading Eeon to seek representation for them.In the filing, Eeon asserted, ” We are the proper parties associated with this case, as the Court identified us as Customers in its Order dated June 17, 2023. We are not common consumers; rather, we are stakeholders, financiers and owners of cryptocurrency held by Binance and its subsidiaries. We firmly think that our interests were not adequately considered.” Eeon contends that crypto coins ought to be deemed products, not securities, as they are mainly used for individual and family use rather than business functions. Additionally, Eeon highlights the absence of particular guidelines for this emerging commodity category, which as a result restricts the SECs jurisdiction over cryptocurrencies.Eeon claims Binance manages clients crypto possessions by blocking gain access to and withdrawals without appropriate notice. They argue that the SECs actions got worse the circumstance for financiers instead of safeguarding their interests, accusing the SEC of mistakenly accusing clients of cash laundering. Eeon requests a court order to grant consumers access to their frozen assets on Binance platforms.Screenshot of the court filing. Source: Court ListenerAdditionally, Eeon argues that overseas fund transfers are a common and accepted practice, unique from money laundering. Different entities like e-commerce platforms, freelance services, seeking advice from firms, little export companies and travel bureau routinely take part in worldwide cash transfers without being related to cash laundering activities.Related: Binance headcount decrease hits 1,000 staff members: ReportIn its counterclaim, Eeon looks for payment from both Binance and the US SEC, equivalent to 20% of the daily worth of kept funds per consumer, totaling $1000 daily. Additionally, both Binance and the US SEC would be similarly responsible for paying penalties, with $500 designated to the United States SEC and $500 allocated to Binance and its subsidiaries.Cointelegraph has connected to Binance to find out more on this case however is yet to receive feedback at the time of this publication.Magazine: Binance cautions on Maverick FOMO, Poly hack: Asia Express
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Other Questions People Ask
What is the role of Eeon in representing Binance customers citing inadequate representation?
Eeon has stepped in as a third-party entity to represent Binance customers who feel inadequately represented by both the SEC and Binance's legal team. In their court filing, Eeon emphasizes that they are not just ordinary consumers but stakeholders and owners of cryptocurrency, asserting that their interests have been overlooked. They aim to ensure that the voices of Binance customers are heard in the ongoing legal proceedings.
How does Eeon argue that the SEC has failed Binance customers?
Eeon contends that the SEC's actions have exacerbated the situation for Binance customers rather than protecting their interests. They claim that the SEC has wrongfully accused customers of money laundering and has not provided adequate representation in the case against Binance. This lack of proper advocacy has prompted Eeon to seek legal recognition as representatives of the affected customers.
What specific claims does Eeon make regarding Binance's management of customer assets?
In their filing, Eeon alleges that Binance has been blocking access to customer crypto assets and withdrawals without proper notice, which they argue is detrimental to investors. They assert that this practice violates the rights of customers and calls into question the legitimacy of Binance's operations. By seeking court intervention, Eeon aims to secure access to these frozen assets for affected customers.
What compensation is Eeon seeking for Binance customers in their counterclaim?
Eeon's counterclaim seeks compensation equivalent to 20% of the daily value of held funds per customer, totaling $1,000 daily. They argue that both Binance and the SEC should share responsibility for these penalties, with $500 allocated to each entity. This claim underscores the financial impact on customers due to the ongoing legal issues surrounding Binance.