“Eeon,” a person claiming to represent Binance clients, attempted to enter into an ongoing securities lawsuit related to the exchange company on July 14.
Eeon and the affected customers wrote in a request:
“We are the appropriate parties to this matter, as we have been identified as “clients” by the court in its June 17, 2023 order. We are not just “customers” as we are stakeholders, investors and owners of our cryptocurrency owned by Binance and its affiliates, and we feel that our best interests have not been taken into account.”
The US Securities and Exchange Commission (SEC) filed suit against Binance on June 5. Eeon’s statements reference a June 17 consent order by which the SEC attempted to limit Binance’s US-related funds. While Binance and the SEC later reached a compromise on the matter, Eeon intends to challenge the outcome.
Specifically, Eeon said it objects to Binance and its subsidiaries’ ability to manage users’ cryptocurrency keys and block user withdrawals — likely in reference to Binance.US’s decision to allow US dollar withdrawals around June 13. to turn off.
Eeon’s goals are expressed differently in deposits. In a motion to intervene, Eeon said the group only intends to allow Binance.US to reopen normal withdrawal functions until the SEC can demonstrate the need to do otherwise. The group said it does not want all assets to be liquidated as it could destabilize the cryptocurrency market.
However, in a second filing and counterclaim, Eeon is asking for a fine to be imposed on Binance and the SEC. Eeon asks those two parties to equal 20% of the daily value of retained funds compounded per day, or a total of $1,000 per day per customer.
In the second document, Eeon accuses Binance and related parties of theft and fraud, while acknowledging that the company blocked withdrawals and denied users their property under a court order. Eeon also argues that the SEC cannot represent clients because it has accused clients of misconduct – an apparent conflict of interest.
Legal value is unclear; Binance withdrawals remain halted
It is unclear whether the declarations have legal value. Eeon claims to have 30 years of court experience. Little other information is available about the person behind that name, who is only identifiable as a Nevada legal entity.
The filings also show a surprising lack of professionalism: the author uses excessive exclamation points and unusual formatting and admits to passing the documents through an AI to convert the text into plain language. The author also describes Binance and the SEC with aggressive language, at one point referring to both as “predator sociopaths.”
Anyway, Binance.US withdrawals remain disabled and the company’s website states there is “no resumption ETA”. Further judicial developments may shed light on whether retractions are likely, regardless of the quality of the latest filings.
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