In September, Binance US, a cryptocurrency exchange in the United States, experienced a significant decline in trading activity. On September 16, the exchange’s trading volume was only $5.09 million, with the lowest point being $2.97 million on September 9. This is a sharp drop from September 17, 2022, when it had a trading volume of approximately $230 million.
Binance US is facing multiple challenges, including a lawsuit filed by the Securities and Exchange Commission (SEC) against Binance and Binance US. The SEC alleges violations related to unregistered securities offerings and wash trading. The lawsuit led to Binance US halting trading for over 100 token pairs, causing a decrease in exchange activity.
Internally, Binance US has seen key executives resign, including its CEO Brian Shorder. There are reports that these departures are linked to an ongoing investigation by the U.S. Department of Justice into Binance, its CEO Changpeng “CZ” Zhao, and Binance US. CZ stated that Shorder’s departure was for a “deserved break” and praised his contributions to the company.
The SEC accused Binance US of non-cooperation in the investigation and claimed it provided only 220 documents during the discovery process. Additionally, a judge recently granted the SEC’s request to unseal documents related to the case, which are expected to be available soon. Binance US’s challenges appear far from over.
On June 9, 2023, in response to an SEC enforcement action, Binance US temporarily halted USD deposits and withdrawals on June 13, becoming a crypto-only platform, as reported by Todayq News. Customers were urged to withdraw USD via bank transfer, with potential delays due to high demand. Binance.US criticized the SEC for using aggressive tactics in what it deemed an ideological campaign against the American digital asset industry.
This lawsuit has also affected multiple Binance partnerships, including one with MasterCard. As reported by Todayq News on August 25, 2023, Mastercard ended its partnership with Binance for crypto card programs in South American countries, including Argentina, Brazil, and Colombia, on September 22, 2023. This move was likely a response to the increased regulatory scrutiny that Binance has faced, including legal actions by the SEC.
