The United States arm of Binance is facing challenges in finding a bank to handle its customers’ cash after the failure of its previous crypto-friendly banks, Signature Bank and Silvergate Capital Corp.
This according to a report by the the Wall Street Journal on Saturday, citing people that are conversant with the matter.
The exchange is now searching for a new banking partner to store its deposits. In the meantime, Binance.US is using at least one intermediary to store funds, which can slow down the sending and moving of funds.
The company has tried to establish relationships with other banks, including Cross River Bank and Customers Bancorp Inc, but they have been reluctant due to concerns over regulatory risk.
A spokesperson for Binance.US told the WSJ, “We work with multiple U.S.-based banking and payment providers and continue to onboard new partners while upgrading our internal systems to create a more stable fiat platform and offer additional services.”
Last month, the U.S. Commodity Futures Trading Commission sued Binance along with its CEO and former top compliance executive, alleging that they were operating an “illegal” exchange and a “sham” compliance program.
Since the lawsuit, investors withdrew $1.6 billion from Binance.
