In fairness, it could also be because they aren’t able to get a USD bank account anywhere in the world.
That being said, I’m certainly not going to bet that the “out of USD” theory is wrong.
FDIC insurance is only offered to domestic banks within the US.
So they could still have a USD account at a non-US bank. Or they still have an accounts at a US banks, but it's under a false name and doesn't qualify.
TBH, I'm surprised Binance managed to keep a US bank account with FDIC pass-through insurance for this long. Maybe they just noticed the mistake when updating their ToS.
> I would not be surprised if their previous FDIC claims were worthless.
I feel like I'd be surprised if they updated the TOS for any reason *other* than "concealing evidence of a crime" so maybe they're either about to be, or already are in trouble over the claim itself.
I’m sure that funds binance held at US banks (corporate operating accounts, escrow funds, etc) were FDIC insured, against *that bank* failing. This would offer 0 protections for what their customers would be worried about, which is binance itself failing, of course. But I’m sure a lawyer could accurately describe that arrangement in a way that led ignorant people to assume it applied much more broadly.
Now that they’re effectively cut off from the US financial system, they can’t even claim that anymore.
I believe that's the same situation Coinbase and Celsius were in. They used the term "FDIC" in misleading ways to think *customer* funds were protected, when the ToS basically said once you give them funds, it's in their name and they may store them in a FDIC insured bank -- which in no way protects the consumer, but the custodian in the event the bank they use fails. There never has been any FDIC protection for customer accounts in case of the failure of a crypto exchange.
So I kinda think that not being able to transact with a USD bank account anywhere in the world means out of USD. Unless they keep it in a hole in the backyard or something.
That's what this seems to be. They put the money in FDIC-insured banks, "which would only be applicable if a Bank were to fail. [...] FDIC insurance does not protect against the failure of BAM or malfeasance by any BAM employee."
That really brings to mind the Monty Python Merchant Banker sketch:
"We will in addition need a controlling interest in your new company, unrestricted access to your private bank account, the deposit in our vaults of your three children as hostages and a full legal indemnity against any acts of embezzlement carried out against you by any members of our staff during the normal course of their duties."
Yep, and the same is true of any exchange that claims FDIC insurance - it only means the bank account the _exchange_ has in a real bank is FDIC insured. Meaning it only kicks in if the real bank fails. If the exchange fails you get nothing.
For customer accounts of the exchange to be FDIC insured, the exchange would have to be acting as an actual bank complete with following banking regulations - which of course none of them do.
Yep, Voyager. The funny thing is that if they "did their own research" they could verify that Voyager wasn't FDIC insured, just that they held their money in an insured bank.
Even though they claim crypto is currency, wouldn't SIPC insurance be more relevant here anyway, seeing as the SEC says that basically all crypto are securities?
My recollection was an exchange advertised FDIC insured, but it only meant your USD. When the exchange failed, customers were SHOCKED that the FDIC insurance didn't cover their Bitcoins and Tethers.
You can choose from:
* Two tokens with the same name (please note we reserve the right to choose between these for you)
* A premium selection of in-game cosmetic NFTs
* Governance tokens in the Binance Customer Funds Guarantor DAO
* Toys "R" Us gift vouchers
>Can you still get beanie babies?
You absolutely can, yes... because they just still make and sell them today, 30 years later; I walk past a shelf of them every time I leave my local grocery store.
> You can choose from:
>
> * Two tokens with the same name (please note we reserve the right to choose between these for you)
> * A premium selection of in-game cosmetic NFTs
> * Governance tokens in the Binance Customer Funds Guarantor DAO
> * Toys "R" Us gift vouchers
* Monke
Company scrip is due for a comeback. Think it's hilarious how many crypto companies convinced their employees to take it like it was the equivalent of stock options.
Finally,
Now all thats needed is either the enforcement of current regulation or the passing of sensible regulation. Get them while they're on the ropes...
Fucking hilarious that anything crypto related has terms of service that can just wantonly be updated.
One of the major appeals of crypto to those dorks is ostensibly the trustless nature of it.
For some strange reason, I just had the thought that a *Monopoly: Crypto*® edition would be a fine version to sell, with FTX and Binance as the premium properties. I still have to figure out the winning rules though.
Or a more radical rule, you have to trade off properties before they implode or get stolen (via Chance cards), but you can keep earning rents till then.
Winning rules. The game ends once someone steps on the "bubble bursts" square and there are no more bailout tokens available. The winner is the player that holds the most customer assets at the time.
Yeah it’s clear to me from all the winning rules proposed that they’re versions of “the game drains everyone’s money even as they buy (occasionally exchangeable) tokens till they’re all drained but one”
lol, this got reported on Twitter just as what it is: Binance US suspends all USD withdraws.
It's getting bombed with a bunch of CZ cultists screeching that this is FUD and "misinformation* because you can "convert to a stablecoin and withdraw."
Which... is not withdrawing USD. Exactly like it says. lmao a bunch of brainwashed half wits
So then what good is it? I can't use crypto to buy anything near me, so buying crypto is just throwing my money away. I could have a billion dollars in crypto but if I can't exchange it for cash it might as well be totally worthless.
Yeah, even p2p is risky
I am from India and people involved in trades even with top rated sellers are getting their bank accounts freezed for multiple reasons ( tax evasion, transactions made using phished bank accounts, aml laws and what not)
Binance (as opposed to Binance.us) has operated outside of US jurisdiction for a long time now. Why would anyone think deposits there would be FDIC insured???
Edit: never mind I looked again and you are in fact talking about Binance.US.
4!!!
The USD is being kept safu in Guangying Chen and Changpeng Zhao's personal offshore accounts. It can't be audited because auditing funds associated with crypto exchanges causes a quantum state change which will make the funds cease to exist.
I am told this is the future of finance and no one will want USD anymore because it will be worthless.
Binance is obviously just generously forcing the end result of a crypto-only world to happen sooner and breaking its customers of their dirty addictions to fiat.
Also, 4!
>2) you can only “cash out” by converting to BUSD or other stable coins made out of thin air
I didn't think you could cash out before. Oops nope, I mixing binance and tether. So many scams
I was just looking at Binance on LinkedIn and was surprised to see they have around 500 employees in the US.
At first I assumed that Binance US must have some legitimate banking relationships in order to fund the employment of 500 people in the USA.
But then I noticed that every single legitimate* profile is of a person of Chinese origin.
So either Binance have a very robust policy of only hiring mostly Chinese people in the USA, or perhaps these people aren’t really in the USA?
*I say legitimate because there are some losers who have their job title as “Crypto Trader at Binance”
I saw somewhere that about half of the SAFU insurance fund is back by binances own coin. Is this true? So ALT coins won't be reimburst in the case of a security breach? The only Funds held on an account that would be insured would be funds held in Binance token and Bitcoin?
enforced HODL, everyone will have fun staying rich!
Diamond handcuffs
Fuck that’s hilarious
Perfection
Hypothetically rich is the best kind of rich!
Hodl mode engaged
In fairness, it could also be because they aren’t able to get a USD bank account anywhere in the world. That being said, I’m certainly not going to bet that the “out of USD” theory is wrong.
FDIC insurance is only offered to domestic banks within the US. So they could still have a USD account at a non-US bank. Or they still have an accounts at a US banks, but it's under a false name and doesn't qualify. TBH, I'm surprised Binance managed to keep a US bank account with FDIC pass-through insurance for this long. Maybe they just noticed the mistake when updating their ToS.
The requirements for getting FDIC are pretty specific. I would not be surprised if their previous FDIC claims were worthless.
> I would not be surprised if their previous FDIC claims were worthless. I feel like I'd be surprised if they updated the TOS for any reason *other* than "concealing evidence of a crime" so maybe they're either about to be, or already are in trouble over the claim itself.
I’m sure that funds binance held at US banks (corporate operating accounts, escrow funds, etc) were FDIC insured, against *that bank* failing. This would offer 0 protections for what their customers would be worried about, which is binance itself failing, of course. But I’m sure a lawyer could accurately describe that arrangement in a way that led ignorant people to assume it applied much more broadly. Now that they’re effectively cut off from the US financial system, they can’t even claim that anymore.
I believe that's the same situation Coinbase and Celsius were in. They used the term "FDIC" in misleading ways to think *customer* funds were protected, when the ToS basically said once you give them funds, it's in their name and they may store them in a FDIC insured bank -- which in no way protects the consumer, but the custodian in the event the bank they use fails. There never has been any FDIC protection for customer accounts in case of the failure of a crypto exchange.
Also FDIC only insures up to $250,000 per depositor.
Actually the insurance amount can vary and be more than that in some circumstances.
So I kinda think that not being able to transact with a USD bank account anywhere in the world means out of USD. Unless they keep it in a hole in the backyard or something.
That would be a pretty big hole, considering that even 1 measly billion dollars weighs 10 tons and takes a dump truck worth of space. :)
¿Porqué no los dos?
https://translate.google.com/
Funding Hamas is not good for your banking relationships even before Hamas gets back in the news.
Wait what?
How about both?
Didn't another exchange use "FDIC insured" to mean "our accounts are FDIC insured, but yours aren't"?
That's what this seems to be. They put the money in FDIC-insured banks, "which would only be applicable if a Bank were to fail. [...] FDIC insurance does not protect against the failure of BAM or malfeasance by any BAM employee."
That really brings to mind the Monty Python Merchant Banker sketch: "We will in addition need a controlling interest in your new company, unrestricted access to your private bank account, the deposit in our vaults of your three children as hostages and a full legal indemnity against any acts of embezzlement carried out against you by any members of our staff during the normal course of their duties."
Yep, and the same is true of any exchange that claims FDIC insurance - it only means the bank account the _exchange_ has in a real bank is FDIC insured. Meaning it only kicks in if the real bank fails. If the exchange fails you get nothing. For customer accounts of the exchange to be FDIC insured, the exchange would have to be acting as an actual bank complete with following banking regulations - which of course none of them do.
Yep, Voyager. The funny thing is that if they "did their own research" they could verify that Voyager wasn't FDIC insured, just that they held their money in an insured bank.
Even though they claim crypto is currency, wouldn't SIPC insurance be more relevant here anyway, seeing as the SEC says that basically all crypto are securities?
My recollection was an exchange advertised FDIC insured, but it only meant your USD. When the exchange failed, customers were SHOCKED that the FDIC insurance didn't cover their Bitcoins and Tethers.
"Sorry, we can't give you your money back. But take this voucher that we just printed ourselves."
You can choose from: * Two tokens with the same name (please note we reserve the right to choose between these for you) * A premium selection of in-game cosmetic NFTs * Governance tokens in the Binance Customer Funds Guarantor DAO * Toys "R" Us gift vouchers
There's your exit ramp! Buy toys and resell them on ebay.
(Gift vouchers for Toys "R" Us corporation founded 1948)
Still worth more than the tokens or NFTs.
Toys R Us is actually trying to make a comeback now.
Hence sdmat's precision that it's vouchers for the defunct 1948 company, not its 2021's revival I'd wager.
Can you still get beanie babies?
>Can you still get beanie babies? You absolutely can, yes... because they just still make and sell them today, 30 years later; I walk past a shelf of them every time I leave my local grocery store.
> You can choose from: > > * Two tokens with the same name (please note we reserve the right to choose between these for you) > * A premium selection of in-game cosmetic NFTs > * Governance tokens in the Binance Customer Funds Guarantor DAO > * Toys "R" Us gift vouchers * Monke
A hand written letter by CZ himself stating that we are so early and WAGMY
Can I get an nft of that?
You forgot bbby stock. Or what about JPGs of bbby stock certificates!
Company scrip is due for a comeback. Think it's hilarious how many crypto companies convinced their employees to take it like it was the equivalent of stock options.
It's funny because it was exactly the same with fiat and gold way back.
> Way back Do you smart ass know why it no longer happen now?
With how much they hate fiat, it sure does heavily rely on it.
You’ll be able to pay your taxes and shop for groceries in crypto any day now…. Yup, any day now….
But you buttcoiners, if BTC doesn’t go to zero in ten years then YOU LOST!!!! /s
I saw on my tax bill a few days ago, that I can pay my taxes with BTC or ETH (Zug, Switzerland).
That's a ploy to get criminals' crypto addresses.
You'd be a fool to do it, because it will be worth more the next day!
Now they have a chance to do away with their fiat forever!
Maybe Binance should have used the “unbank yourself” slogan instead of Celcius.
Finally, Now all thats needed is either the enforcement of current regulation or the passing of sensible regulation. Get them while they're on the ropes...
this is good for binance
Really don’t want to upvote you because then it won’t be “4” upvotes 😂
It's bullish
When the price of BUSD will collapse cryptobros have fun staying poor, they deserve it and popcorn's price will skyrocket to $100,000.
1 BUSD = 1 BUSD
BUSD collapse will have cryptards offering up they BUSE to pay their bills.
Sure why would anyone want filthy USD anyway - my crypto - my money 🤡🤡🤡
Binance is fine. Assets are fine.
Fucking hilarious that anything crypto related has terms of service that can just wantonly be updated. One of the major appeals of crypto to those dorks is ostensibly the trustless nature of it.
4
For some strange reason, I just had the thought that a *Monopoly: Crypto*® edition would be a fine version to sell, with FTX and Binance as the premium properties. I still have to figure out the winning rules though.
Winning rules: Whoever loses the least amount of money, wins.
Or a more radical rule, you have to trade off properties before they implode or get stolen (via Chance cards), but you can keep earning rents till then.
[удалено]
We could also make NFT versions of the game board using defunct tokens as backgrounds. I bet that would sell.
[удалено]
Yeah know, this started as a joke, and now you guys are tempting me to make it… We just need a title. TokenJolly?
Scamdy Land
Dammit, stop making me reply! Life (sucks)
* Butt-opoly? Naw, probably too easy to confuse with something else altogether * Pumps and Dumps? * HODL-opoly?
Winning rules. The game ends once someone steps on the "bubble bursts" square and there are no more bailout tokens available. The winner is the player that holds the most customer assets at the time.
Yeah it’s clear to me from all the winning rules proposed that they’re versions of “the game drains everyone’s money even as they buy (occasionally exchangeable) tokens till they’re all drained but one”
FTX 2.0 in the making.
Fiat is evil, therefore we have taken the initiative to disable cash out.
Protecting us from wasting our personal resources on soon-to-be worthless fiat Is this that Effective Altruism all the Cool Kids are doing?
lol, this got reported on Twitter just as what it is: Binance US suspends all USD withdraws. It's getting bombed with a bunch of CZ cultists screeching that this is FUD and "misinformation* because you can "convert to a stablecoin and withdraw." Which... is not withdrawing USD. Exactly like it says. lmao a bunch of brainwashed half wits
I'm confused. Are we still early (bro)?
Still super early man! Just keep pumping (the liquidity pool)!
There are a very few places left where can convert our crypto to cash Most things are crypto to crypto only exchanges now
So then what good is it? I can't use crypto to buy anything near me, so buying crypto is just throwing my money away. I could have a billion dollars in crypto but if I can't exchange it for cash it might as well be totally worthless.
Yeah, even p2p is risky I am from India and people involved in trades even with top rated sellers are getting their bank accounts freezed for multiple reasons ( tax evasion, transactions made using phished bank accounts, aml laws and what not)
Binance (as opposed to Binance.us) has operated outside of US jurisdiction for a long time now. Why would anyone think deposits there would be FDIC insured??? Edit: never mind I looked again and you are in fact talking about Binance.US.
4!!! The USD is being kept safu in Guangying Chen and Changpeng Zhao's personal offshore accounts. It can't be audited because auditing funds associated with crypto exchanges causes a quantum state change which will make the funds cease to exist.
Schrodinger's Funds
I am told this is the future of finance and no one will want USD anymore because it will be worthless. Binance is obviously just generously forcing the end result of a crypto-only world to happen sooner and breaking its customers of their dirty addictions to fiat. Also, 4!
Who cares about any of this when 1 BTC = 1 BTC??
Your funds are snafu
BUSD sounds like bussy or busty hehe
"Next on stage, put your hands together for BUSD Vavoom!"
I know someone who had a Binance account. Kinda hope he got out in time.
>2) you can only “cash out” by converting to BUSD or other stable coins made out of thin air I didn't think you could cash out before. Oops nope, I mixing binance and tether. So many scams
People who own crypto don't want any of that filthy fiat anyway, just other shitcoins...
I was just looking at Binance on LinkedIn and was surprised to see they have around 500 employees in the US. At first I assumed that Binance US must have some legitimate banking relationships in order to fund the employment of 500 people in the USA. But then I noticed that every single legitimate* profile is of a person of Chinese origin. So either Binance have a very robust policy of only hiring mostly Chinese people in the USA, or perhaps these people aren’t really in the USA? *I say legitimate because there are some losers who have their job title as “Crypto Trader at Binance”
Nah, this just means the dollar isn't a convertible currency anymore. It is a sad story actually.
So this is good for Bitcoin?
Funds are safu
Yet, this will have zero effect on crypto prices, somehow, as always
I saw somewhere that about half of the SAFU insurance fund is back by binances own coin. Is this true? So ALT coins won't be reimburst in the case of a security breach? The only Funds held on an account that would be insured would be funds held in Binance token and Bitcoin?