- Binance.US trading volume hits new lows in September.
- SEC lawsuit and halted trading for over 100 token pairs contributed to the decline.
- Key executive resignations add to the exchange’s challenges.
Binance.US, the US arm of the crypto giant Binance, has recently faced a series of challenges. From regulatory scrutiny to the departure of key executives, mounting issues have led to a plunge in the trading volume. A question arises: can Binance.US recover?
Binance.US’s Declining Trading Volume and Regulatory Hurdles
Mounting issues have significantly impacted Binance.US trading volumes. On Sept. 16, the trading volume on Binance.US stood at a mere $5.09 million, a significant drop from the $230 million recorded on Sept. 17, 2022.
This information is concerning, as crypto exchanges make their money from trading fees. This means that a drop in trading volume can significantly impact its profitability. Moreover, a drop in trading volume reflects traders’ confidence in the exchange.
The likely reason for a drop in trader confidence is a myriad of issues the exchange faces. For one, the lawsuit was filed by the Securities and Exchange Commission (SEC) on June 5.
Following the lawsuit, the exchange halted trading for over 100 token pairs to ensure compliance.
Binance.US Sees Top Executives, CEO Depart
In recent weeks, Binance.US has witnessed a series of high-profile departures that have raised eyebrows in the crypto community.
Most notably, Brian Shorder, who served as the company’s CEO, stepped down on September 13 following a series of high-profile resignations. The exact reasons for his departure are unknown, but a Binance.US spokesperson blamed the SEC’s crackdown.
Amid Shroder’s resignation, Binance.US confirmed that the company would eliminate about a third of its workforce, or more than 100 people. Likely for that same reason, other key figures announced their resignation following the CEO’s departure.
On the Flipside
- On September 15, a judge granted the SEC’s motion to unseal documents related to the case against Binance.US. These documents, previously sealed or redacted at the SEC’s request, are expected to be available soon, providing more insights into the lawsuit’s specifics.
- The same day, the SEC accused Binance.US of not fully cooperating in the ongoing investigation. Specifically, the agency claimed the exchange produced only 220 documents during discovery.
Why This Matters
For crypto traders, the challenges faced by Binance.US serve as a reminder of the regulatory issues in the U.S. SEC’s scrutiny, coupled with internal upheavals, can significantly impact an exchange’s operations and trading volume.
Read about Binance CEO’s response to mass resignations by executives:
Binance CEO Shuts Down Speculations of Executive Exodus
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