A third-party entity called Eeon has intervened in a lawsuit filed by the United States Securities and Exchange Commission (SEC) against crypto exchange Binance.
As stated in filings with the United States District Court for the District of Columbia, Eeon claimed that the SEC and Binance’s attorneys had failed to adequately represent the interests of the exchange’s customers, leading Eeon to seek representation on their behalf.
In the filing, Eeon confirmed:
“We are the right parties involved in this case, because the Court identified us as ‘Customer’ in the Warrant dated June 17, 2023. We are not ordinary customers; rather, we are stakeholders, investors, and owners of cryptocurrencies held by Binance and its subsidiaries. We firmly believe that our interests have not been adequately considered.”
Eeon claims that cryptocurrencies should be considered commodities, not securities, as they are mostly used for personal and household use rather than commercial purposes. Additionally, Eeon highlighted the absence of specific regulations for cryptocurrencies, which consequently limits the SEC’s jurisdiction over the asset.
Eeon claims Binance controls customers’ crypto assets by blocking access and withdrawals without proper notification. He argued that the SEC’s actions made the situation worse for investors instead of protecting their interests, accusing him of falsely accusing customers of money laundering. Eeon requested a court order to grant customers access to their frozen assets on the Binance platform.
Screenshot of the court filing. Source: CourtListener
In addition, Eeon believes that the transfer of funds abroad is a common and accepted practice, in contrast to money laundering. Entities such as e-commerce platforms, freelancing services, consulting firms, small export firms and travel agents routinely participate in international money transfers without being linked to money laundering activity, he said.
Related: Binance headcount cuts by 1,000 employees: Report
In counterclaims, Eeon look for compensation from Binance and the SEC, equivalent to 20% of the daily value of funds held per customer, for a total of $1000 per day. Additionally, both Binance and SEC will be equally liable to pay the penalty, with $500 each awarded.
Cointelegraph has reached out to Binance for more information but has yet to receive a response.
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