Binance.US found itself dealing with a series of difficult obstacles, each of which resulted in a significant decline in its trading business.
Together, these unforeseen obstacles have cast a pall over the platform’s once-buoyant trading landscape, raising concerns about its continued viability in the market.
According to statistics from independent research firm CCData, the monthly trading volume of Binance.US, the U.S. counterpart of the world-renowned cryptocurrency exchange Binance, plummeted 98% from January to August 2022, and is expected to decline further in September.
Binance.US trading volume takes a hit
Amberdata data shows that Binance.US trading volume fell to $5.09 million over the weekend. In comparison, the exchange’s trading volume on September 17, 2022 was approximately $230 million.
Most of the decline occurred after March, which coincided with the U.S. Commodity Futures Trading Commission charging Binance CEO Changpeng Zhao with regulatory violations.
In June, the U.S. Securities and Exchange Commission filed legal proceedings against Binance.US, Zhao and its main exchange Binance, accusing them of a series of violations, including alleged misrepresentation of trading controls and supervision on the Binance.US platform.
The Miami-based company is currently engaged in a legal battle that resulted in the SEC asserting in a Monday filing that Binance.US has shown inconsistency in maintaining a coherent narrative.
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Following the lawsuit, Binance.US suspended trading on more than 100 token pairs, leading to a significant drop in exchange activity and investor confidence.
Additionally, the company has faced internal challenges, including the resignations of CEO Brian Shorder and other key executives such as legal chief Krishna Juvvadi and chief risk officer Sidney Majalya, who left within weeks of Shorder’s exit.
The exodus from Binance.US is accelerating, the U.S. Securities and Exchange Commission said, underscoring the need for a swift and immediate investigation into these matters.
Judge Denies SEC Access to Binance.US Information
Meanwhile, the U.S. Securities and Exchange Commission (SEC) suffered a setback when a federal magistrate judge blocked their immediate access to Binance.US’s software. The SEC has struggled to obtain information from Binance.US since the regulator filed charges against Binance.US, Binance Holdings and Zhao in June.
On Monday, the U.S. Securities and Exchange Commission (SEC) asked a federal district judge to allow it to view Binance.US’s technical infrastructure and force the business to share other information.
The U.S. Securities and Exchange Commission’s cryptocurrency case has hit a minor procedural hurdle as a magistrate judge denied immediate access. The SEC said Binance.US provided fewer than 250 documents and three witnesses.
Data from CoinGecko shows that as of Monday, daily trading volume on Binance.US was approximately $10.5 million. In stark contrast, Coinbase Global Inc., the largest U.S. cryptocurrency exchange, has a daily trading volume of $948 million.
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