Here’s what happened in crypto today

Some European users have reported difficulties withdrawing funds from crypto exchange Binance. Meanwhile, new decentralized social media app Friend.tech has become a central talking point among the crypto community, and the aforementioned Binance is considering legal action against former partner Checkout.com.

Binance limits European withdrawals over payment processing issues

Binance has reportedly limited withdrawals for certain European users due to issues related to Single Euro Payments Area (SEPA) transfers.

A Binance customer support representative wrote on X (formerly Twitter) that euro withdrawals via SEPA were suspended. However, the post was later deleted, with Binance telling Cointelegraph: “The SEPA deposit and withdrawal service will continue until 25 September as originally communicated” and that the “Customer Support message was sent in error.”

In a separate message to Cointelegraph, a Binance spokesperson said: “Some users may occasionally be asked for more information as part of routine compliance checks, which could lead to early closure of their accounts.”

The confusion stemmed from Binance users in Europe claiming to have withdrawal issues. One user in particular claimed to have bought a large amount of euros on Binance but was unable to withdraw the fiat funds due to the closure of the person’s Paysafe account.

Paysafe was Binance’s euro banking partner. Paysafe announced in June it would no longer support the crypto exchange beginning in September.

Friend.tech generates $1M in fees, critics warn it won’t last

Friend.tech, a new decentralized social media app, has rapidly become one of the hottest new things in crypto, though some users are concerned its model won’t stand the test of time.

The social media app, built on Base, has already garnered over 64,000 new users and more than 24,000 Ether (ETH) in trading volume since its beta version launched on Aug. 11.

According to data from DefiLlama, Friend.tech has generated $1.42 million in fees in the last 24 hours and $4.2 million since its public launch.

At the time of publication, the total revenue for the project stands at $1.88 million, and it has witnessed over 724,000 transactions from more than 64,500 unique traders.

However, some Friend.tech observers have warned it’s getting too hot too quickly.

Speaking to Cointelegraph, one crypto commentator, Yazan, believes the app has between six and eight weeks before both share prices and general activity begin to nosedive.

Let me tell you one thing.

Something isn’t right about @friendtech.

Creators making money from a group chat that doesn’t even work when you can’t even reply directly to people?

The way pricing works is ridiculous and can be easily taken advantage of.

Pumps and dumps. pic.twitter.com/TJqcktEM6P

— Yazan (@YazanXBT) August 20, 2023

Another crypto user, pseudonymous Web3 marketer Legendary, said it could draw parallels to BitClout — a predecessor DeSo app from 2021.

“I think the platform will collapse as BitClout did. We are in a bear market, and there’s nothing to do. Everyone jumps on an opportunity to make money, but I think the platform will be done within the next weeks to months,” he wrote.

That being said, some also see the app as having more room to grow, contrasting the naysayers.

Wanted to write down my thesis around @friendtech and why I think it could keep growing & bring some much needed adoption to the first iterations of Web3 Social

since I faded the tg bots growth, I promised myself to be more proactive when potential new Metas pop up

— dragos (@DrgStefanescu) August 18, 2023

Binance considers legal action against Checkout.com

Crypto exchange Binance told Cointelegraph on Aug. 18 that it is considering legal action against its former partner and payment provider Checkout.com. The potential legal dispute came roughly one week after Checkout.com reportedly ended its business relationship with Binance over possible regulatory actions.

“We do not agree with Checkout’s purported basis for termination and are considering our options for legal action,” a Binance spokesperson told Cointelegraph. 

The business fallout has already impacted Binance. Earlier this week, the company confirmed that it is shutting down Binance Connect, a regulated fiat-to-crypto payment platform, due to “changing market and user needs.” Binance Connect launched in March 2022 as Bifinity. 

Today we charged Binance Holdings Ltd. (Binance); U.S.-based affiliate, BAM Trading Services Inc., which, together with Binance, operates https://t.co/swcxioZKVP; and their founder, Changpeng Zhao, with a variety of securities law violations.https://t.co/H1wgGgR5ir pic.twitter.com/IWTb7Et86H

— U.S. Securities and Exchange Commission (@SECGov) June 5, 2023

Binance faces myriad regulatory challenges, including a Securities and Exchange Commission lawsuit against the exchange and its CEO, Changpeng Zhao.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.