Binance, the largest global cryptocurrency exchange, has quietly changed its terms of service after the United States Securities and Exchange Commission (SEC) filed a complaint at the District Court for the District of Columbia on June 5. Meanwhile, BNB prices continue to crash, dropping to register new 2023 lows as when writing on June 12.
Binance Changes Terms Of Service
News of the exchange quietly changing its terms of service was shared on Twitter. Under these new terms, Binance can, at their volition, swap delisted assets held in a user’s dormant account without consent. Moreover, the exchange can swap the token or coin for any asset they wish.
Observers on Twitter say this update represents an additional tool in the ramp’s arsenal, as it can affect users based on listing and delisting assets, identifying dormant accounts, and the precedents it establishes for other cryptocurrency exchanges.
Under the new terms, Binance has exclusive authority to determine which assets are listed, allowing it to list or delist an asset at will. Such a delisted asset can then be converted into a different coin and modified to its order size. Binance can absolve itself and its operatives, of any liabilities or accountability to the asset’s owner, for any fees or losses, or damages incurred in the process.
While most of the above interpretation is speculative, as there have been no official announcements or operational evidence of such activities, concerns have been raised about the possibility of Binance absolving itself of any need to be transparent.
BNB Crashing After SEC’s Lawsuit
The changes come after the SEC’s lawsuit against Binance, which accuses the exchange of allegedly illegally operating an unauthorized exchange in the United States.
Changpeng Zhao, the CEO of Binance, claims that, from 2019, all US-based citizens were restricted from transacting on Binance Global. Zhao also reiterated that its US-based exchange is an independent entity.
However, the SEC claims that the exchange” subverted their controls to secretly allow high-value United States customers to continue trading on the Binance Global platform.” Moreover, while Binance publicly claimed that Binance US is independent, the SEC alleges that Zhao secretly controls the company behind the scenes.
In the wake of this lawsuit, BNB has been free-falling, according to trackers on June 12. The coin is trading at $230 and down 35% from its April high. At this level, BNB has reversed all gains posted in 2023 and is trading in December 2022 territory.
With the SEC cracking the whip, laying down allegations against cryptocurrency exchanges and individual protocols, their respective tokens would likely be under pressure as holders exit.