Entity representing Binance customers seeks compensation
Entity representing Binance customers seeks compensation

A third-party entity called Eeon is involved in a lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against cryptocurrency exchange Binance.

as pointed out In a filing with the U.S. District Court for the District of Columbia, Eeon claimed that the SEC and Binance attorneys failed to adequately represent the interests of the exchange’s clients, leading Eeon to seek to represent them.

Eeon claims in the document:

“We are the relevant parties in this case, and the court identified us as ‘clients’ in the June 17, 2023 order. We are not ordinary clients; we are clients.” Rather, we are held by Binance and its subsidiaries Stakeholders, investors and owners of cryptocurrencies. We firmly believe that our interests are not being adequately considered. “

Eeon claims that cryptocurrencies should be considered commodities, not securities, as they are primarily intended for personal and domestic use rather than business purposes. Additionally, Eeon highlighted the lack of specific regulations for cryptocurrencies, limiting the SEC’s jurisdiction over the asset.

Eeon claimed that Binance took control of customers’ crypto assets by blocking access and withdrawals without proper notice. It argued that the SEC’s actions made investors worse off rather than protecting them, and accused it of falsely accusing clients of money laundering. Eeon requested a court order to allow customers to access frozen assets on the Binance platform.

Screenshot of court documents.Source: Court Audience

Additionally, Eeon believes that offshore fund transfers are a common and acceptable practice, distinct from money laundering. Entities as diverse as e-commerce platforms, freelancing services, consulting firms, small export firms and travel agencies are often involved in international remittances, but not money laundering, the report said.

related: Binance Cuts 1,000 Jobs: Report

Eeon in its countersuit seek Compensation from Binance and the SEC amounted to 20% of the daily value of withheld funds per customer, totaling $1,000 per day. Additionally, both Binance and the SEC will be equally liable to pay the fine, which is $500 each.

Cointelegraph has reached out to Binance for more information but has yet to hear back.

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