Binance.US, one of the most prominent crypto exchanges in the United States, is currently experiencing a significant slump in trading activity.
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The Decline in Binance.US Trading Activity
Recent data from The Tie Terminal reveals that the exchange’s trading volume has reached new lows, marking a stark contrast to its performance just a year ago. On September 16th, Binance.US reported a mere $5.09 million in trading volume, a far cry from its peak trading volume of approximately $230 million on September 17th, 2022.
The month of September 2023 has been particularly challenging for Binance.US. On September 9th, the exchange recorded its lowest trading volume for the month, with just $2.97 million in transactions. This significant drop in trading activity has left many within the crypto community wondering about the factors contributing to this downturn.
Factor Contributing to the Decline
Binance.US, the American subsidiary of the global crypto exchange Binance, is currently traversing a turbulent era defined by a Securities and Exchange Commission (SEC) lawsuit, trading disruptions, CEO departures, and a U.S. Department of Justice investigation.
The SEC filed a lawsuit against both Binance and Binance.US in June, alleging various violations, including unregistered securities offerings and wash trading. Among the SEC’s claims was that Binance.US had failed to register as a broker-dealer and had not registered the offer and sale of its staking-as-a-service program.
This legal action had immediate repercussions, as Binance.US halted trading for over 100 token pairs in response. This move contributed to a sharp decline in exchange activity and caused concerns among traders and investors.
Executive Departures
Amid the turmoil, Brian Shorder, then-CEO of Binance.US, stepped down from his position. His departure added to a string of executive resignations within the broader Binance group of companies.
Notably, Head of Legal Krishna Juvvadi and Chief Risk Officer Sidney Majalya both announced their resignations. These resignations have cast doubt on the exchange’s internal dynamics and leadership stability.
Ongoing Department of Justice Investigation
Reports suggest that these executive departures may be linked to an ongoing investigation by the U.S. Department of Justice into Binance, its CEO Changpeng Zhao, and Binance.US. While Zhao downplayed Shorder’s resignation, calling it a “deserved break,” the timing raised questions considering the exchange’s escalating legal and regulatory issues.
Adding to Binance.US’s woes, the SEC recently accused the exchange of non-cooperation in the ongoing investigation. The regulator claimed that the exchange had provided only 220 documents during the discovery process, raising concerns about transparency and compliance.
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