Binance.US is plummeting, and it’s hard not to notice. This once-thriving hub of crypto activity has nosedived to depths that would give any investor palpitations.
Diving into the figures, the September stats for Binance.US look bleak. On September 16th, a mere $5.09 million was traded on the platform—a far cry from the staggering $230 million exchanged on the same day just a year earlier.
Regulatory Woes Cripple the Exchange
Let’s take a step back. What’s happening to the U.S. sibling of global crypto heavyweight Binance? Last June, the SEC didn’t pull any punches, laying a heavy lawsuit against both exchanges. They slapped Binance.US with charges that include, but aren’t limited to, unregistered securities offerings and wash trading.
The platform didn’t just stop there. It went above and beyond by allegedly not registering as a broker-dealer and ignoring the formalities of registering its staking-as-a-service program.
Since then, it’s been a downhill journey. Binance.US slammed the door shut on trading for a whopping 100 token pairs, triggering a severe cutback in their exchange activities.
Imagine an airport stripping down its runways while still hoping to see planes take off and land as usual. That’s what we’re witnessing here.
An Exodus of Executives
Adding salt to the wound, Binance.US’s internal structure isn’t faring any better. Brian Shorder, who once sat confidently at the helm as the CEO of the company, exited stage left. He’s merely the first in a line of executives who seem to be jumping ship.
Soon after Shorder packed his bags, the head of legal, Krishna Juvvadi, and the chief risk officer, Sidney Majalya, were right on his tail, announcing their own departures.
Rumors are afoot about an investigation by the U.S. Department of Justice. Whispers surround Binance, its head honcho Changpeng “CZ” Zhao, and of course, Binance.US. CZ tried to douse the flames of speculation, hinting at a ‘deserved break’ for Shorder.
But the world of crypto isn’t buying the “all is well” story. After all, under Shorder, Binance.US had its heyday—raising capital, enhancing offerings, and grabbing a sizable chunk of the market share. His departure, then, seems more suspicious than sabbatical.
The SEC Tightens Its Grip
Binance.US’s miseries are piling up. In a bold move, the SEC recently threw shade at the exchange, accusing it of being uncooperative in the ongoing investigation. They claim Binance.US handed over a meager 220 documents during the discovery process. That’s like trying to solve a jigsaw puzzle with most of the pieces missing.
There’s more. On September 15th, a judge made a move that’s likely given Binance.US’s lawyers sleepless nights. An order was passed, giving the SEC the go-ahead to unveil documents linked to the case. Previously sealed or redacted at the SEC’s behest, these files will soon be in the public domain.
Binance.US is in turbulent waters, with challenges coming from both regulatory authorities and its own internal turmoil. With trading volumes shrinking and top executives making hurried exits, the exchange’s future remains uncertain.
The unfolding drama serves as a stark reminder of the volatile nature of the crypto industry and the stringent regulatory challenges it faces. Only time will tell how Binance.US navigates these challenges, but for now, the clouds of uncertainty continue to hover.
