Citing inadequate representation, entity representing Binance customers

In connection with a lawsuit filed by the United States Securities and Exchange Commission (SEC) against Binance, a third-party entity named “Eon” has stepped forward to intervene in the case, representing the interests of Binance customers.

As where did it go In the application filed in the District Court for the District of Columbia, Eon claims that counsel for the SEC and Binance failed to adequately represent the interests of Binance’s customers, which is why Eon has sought representation from them.

In the filing, Eon claimed,

“We are the proper parties involved in this matter, as the Court has identified us as ‘customers’ in its order dated June 17, 2023. We are not ordinary customers; rather, we are stakeholders, investors and owners of cryptocurrencies held by Binance.” its subsidiaries. We firmly believe that our interests were not adequately considered.”

Eon argues that crypto coins should be considered commodities, not securities, as they are primarily used for personal and household use rather than for commercial purposes. Additionally, Eon highlights the absence of specific regulations for this emerging commodity category, resulting in limited SEC jurisdiction over cryptocurrencies.

Eon claims that Binance controls customers’ crypto assets by blocking access and withdrawals without proper notice. They argue that the SEC’s actions have worsened their position rather than protected the interests of investors, accusing the SEC of unfairly accusing clients of money laundering. Eon requests a court order to give customers access to their frozen assets on the Binance platform.

Additionally, Eon argues that offshore fund transfers are a common and accepted practice, which is distinct from money laundering. Various entities such as e-commerce platforms, freelance services, consulting firms, small export companies and travel agencies regularly participate in international money transfers without being linked to money laundering activities.

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In counterclaim, Eon wants to Compensation from both Binance and the US SEC, equal to 20% of the daily value of funds withheld per client, totaling $1000 per day. Additionally, both Binance and the US SEC will be equally responsible for paying the penalty, with $500 being allocated to the US SEC and $500 to Binance and its subsidiaries.

Cointelegraph has reached out to Binance for more information on the matter, but has not received a response by the time of this publication.

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