If your account remains inactive or dormant for an extended period, your funds may be considered “unclaimed” and transferred to your state of residence through a process known as 'escheatment'. This article explains the process and how to prevent your funds from being escheated.
To learn more about the claim process for escheated funds in your state, click here.
What is The Escheatment Process?
What is The Escheatment Process?
Escheatment typically refers to a legal process in which certain entities, including financial institutions like Binance.US, are required by law to transfer unclaimed customer funds (referred to as “Unclaimed Property”) to each customer’s state of residence.
During the escheatment process, Binance.US may be required to convert your crypto balance(s) to U.S. dollars (USD), which may create a taxable event. No conversion is necessary for any USD balance remaining in your account, as USD is escheated as-is.
Escheatment processes vary by state, but funds are typically considered Unclaimed Property after 2–5 years of account inactivity.
In addition to the typical reasons for escheatment, please note that funds may also be escheated in cases where Binance.US suspends operations in your state of residence. This reiterates the importance of staying informed about regulations impacting your account.
How To Protect your Funds from Being Escheated
How To Protect your Funds from Being Escheated
To prevent your funds from being escheated, simply log in to your Binance.US account periodically. This ensures your account will not fall into inactive or dormant status.
How to Claim Escheated Funds
How to Claim Escheated Funds
If your funds have been escheated, or to learn more about the claim process for escheated funds in your state, visit your state’s unclaimed property website and follow their claims instructions.
Legal disclaimer: This material has been prepared for general informational purposes only and should NOT be: (1) considered an individualized recommendation or advice; or (2) relied upon for any investment activities. All information is provided on an as-is basis and is subject to change without notice. We make no representation or warranty of any kind, express or implied, regarding the accuracy, validity, reliability, availability, or completeness of any such information. Binance.US does NOT provide investment, legal, or tax advice in any manner or form. The ownership of any investment decision(s) exclusively vests with you after analyzing all possible risk factors and by exercising your own independent discretion. Binance.US shall not be liable for any consequences thereof.
Binance.US reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice.