Leading cryptocurrency exchange Binance.US is facing significant operational strain following a legal investigation by the U.S. Securities and Exchange Commission (SEC). Christopher Blodgett, the exchange's chief operating officer, said in a recent court deposition that key banking partnerships were discontinued following the SEC's June lawsuit. This development has put the company in a precarious position, Blodgett said.To banks, we are radioactive material. ”
The lawsuit accuses Binance.US and its founders of, among other things, offering unregistered securities, with approximately 1 billion dollars Within assets from the platform. The financial impact is significant; 75% Revenues plummeted and more than two-thirds of the workforce was unfortunately laid off, affecting more than 200 employees.
The SEC's strong stance not only affected Binance.US's liquidity, but also its position with market makers, reducing the number of collaborators from more than 20 to fewer than 5. Despite resolving related violations with other regulatory bodies for significant amounts; 4.3 billion dollars, The SEC continues its legal battle and is seeking further evidence against the exchanges.
Amid these challenges, the company's founder, Changpeng “CZ” Zhao, pleaded guilty to money laundering charges at a sentencing hearing scheduled for April 3, and faces a possible 18 months in prison. It is said that