Binance customers represented by entity, citing inadequate representation
A third-party entity named "Eeon" has stepped forward to intervene in the case, representing the interests of Binance's customers regarding the lawsuit filed 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 claims that the SEC and Binance's attorneys have failed to sufficiently represent the interests of Binance's customers, leading Eeon to seek representation for them.
In the filing, Eeon asserted,
Eeon contends that crypto coins 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 this emerging commodity category, which consequently limits the SEC's jurisdiction over cryptocurrencies.
Eeon claims Binance controls customers' crypto assets by blocking access and withdrawals without proper notice. They argue that the SEC's actions worsened the situation for investors instead of safeguarding their interests, accusing the SEC of wrongly accusing customers of money laundering. Eeon requests a court order to grant customers access to their frozen assets on Binance platforms.
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.
Related: Binance headcount reduction hits 1,000 employees: Report
In its counterclaim, Eeon seeks compensation from both
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