Chinese Crypto Customers Seek Compensation for Crypto Bankruptcies

Cryptocurrencies and the SEC

A third-party entity called Eeon has intervened in the lawsuit filed by the United States Securities and Exchange Commission (SEC) against crypto exchange Binance.

As stated in the filing with the United States District Court for the District of Columbia, Eeon seeks to represent the interests of Binance’s customers, due to what it claims is the SEC and attorneys for Binance failing to do so.

In the filing, Eeon asserted that cryptocurrencies should be deemed commodities, not securities, as they are predominantly used for personal and household purposes rather than commercial ones. Additionally, Eeon highlighted the absence of specific regulations for cryptocurrencies, which limits the SEC’s jurisdiction over the assets.

Crypto exchanges such as Binance, Chinese crypto, and best crypto sites have become increasingly popular in recent years. However, the recent bankruptcy of coval crypto and other crypto bankruptcies have raised questions about the safety of crypto investments.

The emergence of Web 3.0 crypto, coti crypto, and band crypto has further complicated the regulatory landscape, making it difficult for the SEC to effectively regulate the crypto market.

Crypto Assets and Money Laundering

Eeon is accusing Binance of blocking customers’ crypto assets without proper notice and claims that the SEC’s actions worsened the situation for investors instead of safeguarding their interests. Furthermore, Eeon argues that offshore fund transfers are a common and accepted practice, distinct from money laundering, and are often used by e-commerce platforms, freelance services, consulting firms, small export companies, and travel agencies.

In its counterclaim, Eeon is demanding compensation from Binance and the SEC, equivalent to 20% of the daily value of withheld funds per customer, totaling $1000 per day. Both Binance and the SEC would be equally responsible for paying penalties of $500 each. Cointelegraph has reached out to Binance for more information but is yet to receive a response.

The Chinese crypto space has experienced numerous bankruptcies, and Binance is one of the best crypto sites to access crypto assets. Coval Crypto and Coti Crypto are two of the most popular crypto coins in China. Web 3.0 crypto is a new technology that is revolutionizing the way people use the internet.