Trading activity on Binance.US has reached record lows in September, as the crypto exchange continues to face numerous challenges. According to data from Amberdata on The Tie Terminal, the exchange’s volume on September 16 was only $5.09 million, marking a significant decline from previous months. The lowest point for the month was on September 9, when trading activity totaled just $2.97 million. This is a stark contrast to September 17, 2022, when Binance.US had a trading volume of around $230 million.
Binance.US is the United States-based branch of global crypto exchange Binance. However, the exchange has been facing legal troubles since the Securities and Exchange Commission (SEC) filed a lawsuit against both Binance.US and Binance on June 5. The lawsuit accuses the exchanges of engaging in unregistered securities offerings and wash trading, among other violations. The SEC alleges that Binance.US failed to register as a broker-dealer and neglected to register its staking-as-a-service program.
Since the lawsuit, Binance.US has halted trading for over 100 token pairs, resulting in a significant decrease in exchange activity. Additionally, the exchange has been dealing with internal challenges, including the departure of CEO Brian Shroder, who stepped down last week. Shroder’s resignation follows a string of departures by global executives within the Binance group of companies. Head of legal Krishna Juvvadi and chief risk officer Sidney Majalya also announced their resignations after Shroder’s departure.
Reports suggest that these departures may be linked to an ongoing investigation by the U.S. Department of Justice into Binance, CEO Changpeng “CZ” Zhao, and Binance.US. In response to speculation surrounding Shroder’s departure, CZ stated on X (formerly Twitter) that the executive was taking a “deserved break.” CZ praised Shroder’s contributions, saying, “Under his leadership, Binance.US raised capital, improved its product and service offerings, solidified internal processes, and gained significant market share, all of which helped to build a more resilient company for the benefit of customers. We are grateful for his contributions.”
However, Binance.US’s problems are far from over. The SEC recently accused the exchange of non-cooperation in the ongoing investigation, claiming that it only produced 220 documents during the discovery process. In another development, a judge granted the SEC’s motion to unseal documents related to the case, which were previously sealed or redacted. These documents are expected to become available in the coming days.
It remains to be seen how Binance.US will navigate these challenges and regain its trading activity. The exchange’s future may depend on the outcome of the SEC investigation and its ability to address the concerns raised by regulators.
Sources:
– [The Tie Terminal](https://thetietrading.com/)
– [Amberdata](https://amberdata.io/)
– [SEC lawsuit against Binance](https://www.sec.gov/news/press-release/2022-83)
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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