Binance.US Faces Shrinking Volumes Amidst Challenges
Key Insights:
- Binance.US’s trading volume dips to $5.09 million, a sharp contrast from last year’s $230 million.
- Key executives exit Binance.US amidst growing regulatory pressures and internal upheavals.
- SEC intensifies scrutiny, seeking to unseal case-related documents as Binance.US faces cooperation criticism.
Binance.US, once a bustling hub for crypto traders, now witnesses dwindling trading volumes as it grapples with regulatory and internal challenges.
Dipping Trading Volumes Signal Distress
Data from Amberdata on The Tie Terminal reveals that on September 16, Binance.US recorded a trading volume of just $5.09 million. This figure starkly contrasts with the September 17, 2022 volume, which stood at an impressive $230 million. Additionally, the month witnessed its lowest trading volume on September 9, amounting to a mere $2.97 million.
The decline in volume aligns with the multiple challenges Binance.US has been encountering recently. A significant factor has been the Securities and Exchange Commission’s (SEC) lawsuit from June 5, which targeted Binance.US and its global counterpart, Binance. The SEC’s charges revolved around alleged unregistered securities offerings and wash trading. Binance.US also faced accusations of failing to register as a broker-dealer and not registering its staking-as-a-service program.
In response to these allegations, Binance.US suspended trading for over 100 token pairs, which led to a significant drop in trading activities.
Exodus of Key Executives Deepens Concerns
Internal challenges have further complicated matters for Binance.US. The recent departure of Brian Shorder, the then CEO of Binance.US, marks a significant shift in the company’s leadership landscape. His exit was closely followed by Krishna Juvvadi, the head of legal, and Sidney Majalya, the chief risk officer, both announcing their resignations.
Many believe that these departures relate to the ongoing investigation by the U.S. Department of Justice into Binance, Binance.US, and its CEO, Changpeng “CZ” Zhao. In a statement on X (formerly known as Twitter), CZ acknowledged Shorder’s tenure and credited him for his contributions to Binance.US during challenging times.
SEC Tightens Its Grip
Further challenges loom for Binance.US, with the SEC intensifying its efforts. The regulatory body expressed dissatisfaction with Binance.US’s cooperation, noting the exchange provided only 220 documents during their investigation. Consequently, on September 15, a judge approved the SEC’s request to unseal certain documents related to the case, previously sealed or redacted at the SEC’s behest. These documents, expected to be released shortly, might provide further insights into the ongoing regulatory face-off.
Binance.US’s recent setbacks underscore the evolving challenges that crypto exchanges face, especially on the regulatory front. How Binance.US addresses these issues in the forthcoming months remains a focal point for industry watchers and participants.
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