Breaking: Binance US Loses Its FDIC-Insured Status, Halts All USD Withdrawals

The world’s largest crypto exchange Binance’s U.S.-based subsidiary Binance.US has lost its FDIC-insured status, the crypto exchange informed its customers in an email on Tuesday. Binance US has updated the terms of use with changes to deposit insurance language following guidance from the Federal Deposit Insurance Corporation (FDIC).
Binance.US No Longer US FDIC Insured
Binance.US has informed its customers in an email that crypto deposits are no longer insured, as per updated terms of use of the crypto exchange.
“Digital Assets are not legal tender, are not backed by any government, and accounts and value balances are not subject to protections or insurance provided by the FDIC or the Securities Investor Protection Corporation (SIPC).”
In addition, users must convert their fiat U.S. dollars in accounts to stablecoins or other digital assets to withdraw their crypto holdings. Binance.US’ accounts were earlier insured up to $250,000 per person.
Custodial accounts at exchanges such as Coinbase have FDIC protection per-depositor coverage limit of $250,000 per individual, as per terms of service. However, the availability of pass-through FDIC insurance is “contingent upon Coinbase having correct information about you as a customer.”
Binance Facing Regulatory Heat
The exchange is facing a crackdown by the regulators in the U.S. led by the Securities and Exchange Commission. Binance CEO “CZ” has criticized the regulators for their actions against Binance and Binance.US.
Meanwhile, the SEC argues that Binance.US failed to cooperate on the consent order in the lawsuit. The SEC argues BAM has only produced approximately 382 and refuses to provide its position on producing the remaining documents as requested by the agency under the consent order. Binance.US said the SEC has made more requests since the September 18 hearing, which are unreasonable.
Also Read:
- New Whale Buys 410 Million XRP Worth Over $200 Mln, What’s Happening?
- Judge Signs Major Order In Sam Bankman-Fried Lawsuit
- Israel Cracks Down on Crypto Links to Hamas Amid Rising Conflict
- Crypto Stakeholders Push Back as Banks Seek Yield Ban Provision in CLARITY Act
- Crypto ETFs Approval Faces Uncertainty as Government Shutdown Looms, Bloomberg Analyst Says
- Fed’s Hammack Backs Restrictive Policy Over Rate Cuts Amid Inflation Concerns
- Fed Governor Chris Waller Champions Stablecoins as a Tool for Cheaper Global Payments
- LBank Celebrates 10 Years With Bold Achievements and Global Expansion
- Bitcoin Price Set to Rebound Ahead of US Government Shutdown, NFP Data
- XRP Price Prediction: How XRP Could React After October 2025 SEC ETF Decisions
- Aster Price Prediction as US President Adds $110M Worth of Tokens to His Portfolio
- Pepe Coin Price Bounce Likely as Support Zone Aligns With Rising Social Activity
- Solana Price Set for Recovery Amid Wyckoff Accumulation and Canary Capital ETF Filing
- Avalanche Price Could Surge to $50 as Transactions Jump 200%