Binance.US Volume Plunges Amid Regulatory Crisis
Binance.US reportedly suffers from reduced trading volume as per data projections till 16th September. The trading volume for the exchange platform was noted at $5.09 million while the firm is dealing with regulatory scrutiny and departure of its top executives. It is worth noting that Binance.US is facing a lawsuit from the Securities and Exchange Commission.
On this account, the firm has experienced lowest trading volumes during September. Amberdata reported that the exchange platform slumped to $5.09 million this week. At the same time, the lowest measure of trading volume was noted on 9th September when it drained to $2.97 million.
Compared with last year, the trading volume for the exchange was fairing around $230 million. Binance.US is the American wing of the global cryptocurrency trading platform. The Securities and Exchange Commission brought lawsuits against Binance Global and Binance.US for violating the unregistered securities laws.
In addition, the exchange was also dealing with a barrage of other charges regarding financial misconduct. SEC has argued that Binance.US does not have a registration as a broker-dealer or regulate its staking services.
Following the lawsuit, Binance.US halted trade for more than 100 tokens leading to massive downfall in the trading volume of activities at the exchange.
Top Leadership Leaves Binance.US
Binance.US has reportedly chopped down one third of its workforce. At the same time, top executives at the firm namely CEO Brain Shroder resigned from his position. It was shortly followed by a number of other executives who left the enterprise during last week.
Krishna Juvvadi, the head of legal department and Chief Risk Office Sidney Majalya announced their departure at the same time. Media reports suggested that the departure was a result of the deposition requests brought against its employees.
Other narratives suggest that Department of Justice is currently investigating Binance CEO CZ and Binance.US head. Talking about the departure of Shroder, CZ claimed that the he was taking a deserved break.
He also recounted various contributions of the executive and claimed that the company was grateful for his contributions. However, legal troubles for Binance are not ending with new developments in the lawsuit happening every week.
SEC Accuses Binance.US of Non-Cooperation
Securities and Exchange Commission has brought lawsuit against Binance.US for not cooperating with the regulatory process. The regulatory agency argues that the exchange has only submitted 220 documents for the discovery process. The regulator was granted permission to unseal the documents relevant to the lawsuit on 15th September.
These documents had been redacted and sealed as per SEC request. However, the court records will now make the records available for public access. Binance and its CEO CZ are now facing 13 charges brought by regulators.
Regulators are also questioning the firm for moving funds in violation of the consent order granted by courts in June. Meanwhile, Binance CEO has labeled the development as much ado about nothing. There are also questions about the custodial services provider of Binance.US.
On the other hand, the trading platform has retained that it would continue to cooperate with the regulators. Binance.US has alleged that the regulatory scrutiny has led to massive decline in trading volume and downsizing at the firm. SEC is also probing into the unregistered custodial arm of the Binance.US.
