Binance.US Exchange Volume Slumps Amidst Crisis – In September, Binance.US has experienced a notable decline in its trading activity due to unprecedented challenges. On September 16, the exchange recorded a trading volume of just $5.09 million, according to data from Amberdata on The TIE Terminal. The lowest point for the month occurred on September 9, with trading activity amounting to only $2.97 million.
This marks a substantial decrease compared to September 17, 2022, when the exchange’s trading volume was approximately $230 million. Binance.US, the United States branch of the global cryptocurrency exchange Binance, faced legal challenges when the Securities and Exchange Commission (SEC) filed a lawsuit on June 5. This lawsuit accused both Binance and Binance.US of various violations, including unregistered securities offerings and wash trading.
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According to the SEC, Binance.US failed to register as a broker-dealer and also failed to register its staking-as-a-service program. Following the lawsuit, Binance.US suspended trading for more than 100 token pairs, leading to a significant decrease in exchange activity. Additionally, the company encountered internal turmoil as Brian Shorder, the former CEO of Binance.US, resigned, joining a growing list of executives who had left the Binance group in recent weeks.
Notably, Head of Legal Krishna Juvvadi and Chief Risk Officer Sidney Majalya also announced their resignations. Reports suggest that these departures may be connected to an ongoing investigation by the U.S. Department of Justice into Binance, its CEO Changpeng “CZ” Zhao, and Binance.US. In response to speculation surrounding Shorder’s departure, CZ stated on X (formerly Twitter) that the executive was taking a well-deserved break.
CZ wrote: “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.” Binance.US continues to face ongoing challenges, with the SEC alleging that the exchange has not been cooperating in their investigation.
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According to the SEC, Binance.US provided only 220 documents during the discovery process. Additionally, on September 15, a judge granted the SEC’s motion to unseal documents related to the case. These documents had previously been sealed or redacted at the SEC’s request but are now being unsealed upon their request. The release of these documents is anticipated in the near future.