Binance.US has informed users that they will lose the ability to withdraw their dollar funds from its platform next Tuesday.

In the Thursday tweet that announced the move, the company also stated it’s no longer accepting dollar deposits. The move comes as Binance.US faces mounting scrutiny from the U.S. Securities Exchange Commission. The agency this week sued the company’s operator, BAM Trading Services Inc., affiliate Binance Holdings Ltd. and founding Chief Executive Changpeng Zhao for violating securities laws.

The SEC’s litigation “has created challenges for the banks with whom we work,” Binance.US stated on Thursday by way of explanation for its move to halt withdrawals. “We are taking these proactive steps as we – for a time – transition to a crypto-only exchange,” it added.

The SEC has charged the company operator BAM Trading, Binance and Zhao with 13 counts of securities law violations. The companies are accused of failing to register key parts of their financial activities with the agency and engaging in market manipulation. In a court document made public this week, the SEC charged that the companies also redirected more than $12 billion worth of customer assets to firms controlled by Zhao.

Shortly after filing its lawsuit, the SEC asked a court to freeze Binance.US’ assets temporarily. The agency stated in a filing that the move is necessary to “ensure the safety of customer assets and prevent the dissipation of available assets for any judgment.”

The SEC estimates that Binance.US manages $2.2 billion worth of cryptocurrency for users, as well as $377 million held in dollar bank accounts. The company is said to have opened those accounts at Axos Bank, a San Diego-based financial institution. Axos Bank’s parent company, Axos Financial Inc., trades on the NYSE and has $19.8 billion in assets under management. 

Binance.US previously relied on Signature Bank and Silvergate Capital Corp. to hold customer funds. Regulators shut down the former bank, a major lender to the cryptocurrency industry, in March amid concerns about its financial stability. Silvergate shuttered its operations the same month after previously losing $1 billion in a single quarter.

The SEC this week sued not only Binance but also Coinbase Global Inc., another major cryptocurrency exchange operator. Companies that provide certain types of financial services must register their activities with the SEC. In its lawsuit, the agency alleges that Coinbase operated as an unregistered securities exchange, broker and clearing agency.

The SEC also charged the company over its crypto staking-as-a-service program. The program enables customers to earn rewards for holding certain crypto assets. According to the SEC, Coinbase’s staking-as-a-service product amounts to an unregistered offer and sale of securities.

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