Binance.US Trading Activity Plummets, Internal Turmoil and SEC Investigation Deepen Challenges
Summary:
Trading activity on Binance.US hits new lows in September as the crypto exchange faces challenges. Volume drops significantly compared to previous months. Binance.US also experiences internal turmoil with the departure of key executives. SEC accuses Binance.US of non-cooperation in ongoing investigation. Unsealed documents expected to be released soon.
Trading activity on Binance.US has hit a new low in September amid unprecedented challenges faced by the crypto exchange. According to data from Amberdata on The Tie Terminal, exchange volume on Sep. 16 stood at $5.09 million, the lowest point for the month being $2.97 million on Sep. 9. This is a significant drop compared to the trading volume of around $230 million recorded on Sep. 17, 2022. The decline in trading activity can be attributed to the legal troubles faced by Binance.US, the offshoot of global crypto exchange Binance, as well as internal challenges. The Securities and Exchange Commission (SEC) filed a lawsuit on June 5 against both crypto exchanges, accusing them of unregistered securities offerings and wash trading, among other violations. Binance.US has since suspended trading for more than 100 token pairs. The exchange is also facing internal turmoil, with CEO Brian Shorder stepping down, followed by the resignations of head of legal Krishna Juvvadi and chief risk officer Sidney Majalya. These departures reportedly coincide with an ongoing investigation by the U.S. Department of Justice into Binance, CEO Changpeng "CZ" Zhao, and Binance.US. In response to speculation surrounding Shorder's departure, CZ stated that the executive was taking a well-deserved break. However, the problems faced by Binance.US continue to mount. The SEC recently accused the exchange of non-cooperation in the ongoing investigation, claiming that it produced only 220 documents during the discovery process. Additionally, a judge has granted the SEC's motion to unseal documents related to the case. These documents, which were previously sealed or redacted, are expected to be made available in the coming days.
Published At
9/17/2023 9:17:22 PM
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