• Home
  • Binance
  • Binance.US COO Reveals: 📉 Two-Thirds Workforce Axed, Revenue Tanks 75% Post SEC Lawsuit!
Binance.US COO Reveals: 📉 Two-Thirds Workforce Axed, Revenue Tanks 75% Post SEC Lawsuit!

Binance.US COO Reveals: 📉 Two-Thirds Workforce Axed, Revenue Tanks 75% Post SEC Lawsuit!

Binance.US Faces Major Setbacks and Layoffs Following SEC Lawsuit

Binance’s US subsidiary, Binance.US, has been severely impacted by the ongoing lawsuit filed by the Securities and Exchange Commission (SEC) over alleged violations of securities law. The COO of Binance.US, Christopher Blodgett, revealed in a recently disclosed deposition that the lawsuit has had a devastating effect on the division, leading to significant layoffs and a decline in revenue. Here are the key points:

  • The SEC sued Binance in June last year, naming co-founder Changpeng Zhao and BAM Trading (which operates Binance.US) in the suit.
  • The agency alleged that BNB and BUSD tokens are unregistered securities, and BAM Trading’s staking program falls within the SEC’s definition of a security.
  • Binance agreed to a $4.3 billion settlement with the Department of Justice and the Commodity Futures Trading Commission for violations related to illicit finance but the SEC’s case remains unresolved.

Binance.US Witnessed Massive Withdrawals After Restraining Order

In response to the SEC’s lawsuit, a temporary restraining order (TRO) was issued against Binance.US to freeze funds until it could prove that neither Binance nor its majority owner, Changpeng Zhao, could access them. The TRO had significant consequences for Binance.US:

  • Over $1 billion worth of assets, including cryptocurrencies and fiat currencies, were withdrawn from the platform following the restraining order.
  • Blodgett noted that institutional confidence in Binance.US was severely eroded as a result of the accusations made by the SEC.
  • The number of market makers operating on the platform dropped from over 20 to less than five after the TRO was issued.
  • Binance.US lost two banking partners and has been unable to secure replacements since the order was implemented.
  • Revenue declined by over 75%, while operating costs increased and legal expenses amounted to approximately $10 million.

Binance.US Accused of Non-Cooperation with SEC

The SEC has accused Binance.US of failing to cooperate with requests for information regarding customer assets and other matters related to the investigation. The agency claims that Binance.US has not adequately disclosed changes made to processes and controls, hindering the verification of compliance with the Consent Order:

  • The SEC attorneys argue that these undisclosed changes have led to delays and incomplete information, hampering the efficiency of the investigation process.
  • Recent investigations have revealed discrepancies in BAM Trading’s initial claims of compliance with the Consent Order.

Hot Take: Binance.US Faces Significant Challenges Amidst SEC Lawsuit

The ongoing SEC lawsuit against Binance.US has had a severe impact on the company, resulting in major setbacks and layoffs. Here’s what you need to know:

  • The SEC alleges that BNB and BUSD tokens are unregistered securities, while BAM Trading’s staking program falls within the definition of a security.
  • Binance agreed to a $4.3 billion settlement with the Department of Justice and the Commodity Futures Trading Commission, but the SEC’s case remains unresolved.
  • A temporary restraining order froze funds on Binance.US, leading to over $1 billion in withdrawals and a decline in institutional confidence.
  • Binance.US has lost two banking partners, experienced a revenue decline of over 75%, and incurred significant legal expenses.
  • The SEC has accused Binance.US of non-cooperation and inadequate disclosure of changes made to processes and controls.

Despite these challenges, the outcome of the SEC lawsuit against Binance.US remains uncertain. The company will need to navigate through these legal hurdles and regain institutional trust to rebuild its operations successfully.

Read Disclaimer
This content is aimed at sharing knowledge, it's not a direct proposal to transact, nor a prompt to engage in offers. Lolacoin.org doesn't provide expert advice regarding finance, tax, or legal matters. Caveat emptor applies when you utilize any products, services, or materials described in this post. In every interpretation of the law, either directly or by virtue of any negligence, neither our team nor the poster bears responsibility for any detriment or loss resulting. Dive into the details on Critical Disclaimers and Risk Disclosures.

Share it

Binance.US COO Reveals: 📉 Two-Thirds Workforce Axed, Revenue Tanks 75% Post SEC Lawsuit!