Trading activity on Binance.US hit a new low in September as cryptocurrency exchanges faced unprecedented challenges. According to Amberdata on The Tie Terminal, the trading volume on Binance.US was $5.09 million on September 16.
The lowest point for the month occurred on September 9, when trading activity totaled $2.97 million. This is a significant decrease compared to September 17, 2022, when its trading volume was approximately $230 million.
Binance.US is the U.S. branch of global cryptocurrency exchange Binance. On June 5, the U.S. Securities and Exchange Commission filed a lawsuit against two cryptocurrency exchanges, accusing them of violations such as unregistered securities issuance and wash trading. According to SEC regulations, Binance.US allegedly failed to register as a broker-dealer and to register the offer and sale of its staking-as-a-service program.
Since the lawsuit, Binance.US has suspended trading on more than 100 token pairs, causing a sharp drop in trading activity.
The turmoil at Binance US also comes with internal challenges. Binance.US’s then-CEO Brian Shorder resigned last week, joining a number of global executives who have left the company’s group in the past few weeks. Following Shorder’s departure, legal director Krishna Juvvadi and chief risk officer Sidney Majalya also announced their resignations.
According to reports, the departure is said to be due to the ongoing U.S. Department of Justice investigation into Binance, Binance CEO Changpeng Zhao, and Binance.US. In response to speculation about Shorder’s departure, CZ said on X (formerly Twitter) that the executive was taking a “well-earned break.”Czech Republic wrote:
“Under his leadership, Binance.US has raised capital, improved products and services, solidified internal processes, and gained significant market share, all of which has helped build a more resilient company that delivers value to its customers. Come benefit. We appreciate his contribution.”
Binance.US’s problems appear to be far from over. The U.S. Securities and Exchange Commission (SEC) recently accused the company of being uncooperative in its ongoing investigation, claiming it provided only 220 documents during the discovery process. In another development, a judge issued an order on September 15 granting the U.S. Securities and Exchange Commission’s (SEC) motion to unseal documents in the case. These documents have been sealed or redacted at the SEC’s request and are currently being unsealed at the SEC’s request. The documents are expected to be available in the coming days.
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