Trading Activity on Binance.US Hits New Lows Amid Challenges
The trading activity on Binance.US has significantly dropped in September, presenting unprecedented challenges for the crypto exchange. On September 16, the exchange volume reached $5.09 million, as reported by Amberdata on The Tie Terminal. This is a significant decline compared to September 17, 2022, when the trading volume was around $230 million. The lowest point for the month occurred on September 9, with total trading activity amounting to $2.97 million.
Binance.US Faces Legal Issues and Internal Turmoil
Binance.US is the United States-based branch of the global crypto exchange Binance. However, it has been facing legal troubles since June 5, when the Securities and Exchange Commission (SEC) filed a lawsuit against both Binance and Binance.US. The charges include unregistered securities offerings and wash trading violations. The SEC alleges that Binance.US failed to register as a broker-dealer and did not register its staking-as-a-service program.
In response to the lawsuit, Binance.US suspended trading for over 100 token pairs, leading to a significant decrease in exchange activity. Additionally, the company has been experiencing internal challenges. Former CEO Brian Shorder recently stepped down, joining several other global executives who have left the company in recent weeks. Head of legal Krishna Juvvadi and chief risk officer Sidney Majalya also resigned following Shorder’s departure.
Ongoing Investigation and SEC’s Accusations
Reports suggest that these departures are linked to an ongoing investigation by the U.S. Department of Justice into Binance, its CEO Changpeng “CZ” Zhao, and Binance.US. CZ addressed speculation surrounding Shorder’s departure on X (formerly Twitter), stating that the executive was taking a “deserved break.” However, the SEC has accused Binance.US of non-cooperation in the investigation, claiming that only 220 documents were produced during the discovery process.
Furthermore, a judge recently granted the SEC’s motion to unseal documents related to the case. These documents were previously sealed or redacted at the SEC’s request and will soon be available to the public. The situation continues to unfold, and Binance.US faces ongoing challenges and scrutiny.
Hot Take: Binance.US Struggles Amid Legal Issues and Internal Turmoil
Binance.US is currently grappling with significant obstacles as its trading activity reaches new lows. The exchange’s legal troubles, including a lawsuit filed by the SEC, have resulted in the suspension of numerous token pairs and a decline in overall exchange activity. Moreover, internal challenges have arisen with key executives leaving the company amid an ongoing investigation by the U.S. Department of Justice. The SEC has also accused Binance.US of non-cooperation. As the situation unfolds, it remains uncertain how Binance.US will navigate these challenges and regain stability in the highly competitive crypto market.
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