- US is cutting jobs and making less money because of a lawsuit from the SEC. They have to let go of 200 workers.
- The SEC is investigating Binance. US and has frozen its assets, which is causing problems for its operations, partnerships and revenue.
- Binance is facing legal battles, market instability, and problems with government agencies, even though they have made agreements with them. The United States.
BinanceUS, the American part of the worldwide cryptocurrency exchange, is facing big problems because of legal actions from the U. S The Securities and Exchange Commission (SEC). Simple: SEC is the abbreviation for the Securities and Exchange Commission. The company had to fire more than 200 workers because of the SEC lawsuit. This is about two-thirds of its employees since June. Newly released court papers say that.
Decrease in money earned and close monitoring by rules and regulations
The investigation into Binance and its founder, Changpeng Zhao, became more serious after accusations of wrongdoing. The SEC is suing the exchange for doing bad things like mishandling customer money and selling registered securities.
So,US’s income decreased a lot, about 75%, because the SEC took action to freeze assets connected to the exchange.
Effect on how things work and relationships with other groups
Christopher Blodgett, the person in charge of running Binance. US, expressed his sadness about how the SEC’s actions have severely hurt the platform. He said it’s almost like a big punch that could seriously damage their operations. The rules have made it hard for Binance. US to make important partnerships, like with banks and market makers. The number of partners decreased a lot, from more than 20 to less than five, after the legal action.
Although Binance reached an agreement with several government agencies and agreed to pay $4. 3 billion, they are still fighting with the SEC in court. In January, a case was discussed in front of a judge about trying to end the lawsuit. However, the SEC’s decision to stop access to money has made Binance. US’s problems worse, making it harder for them to do business.
Binance changing to fit the market changes
Due to legal problems and losing banking partners, Binance. US looked for other ways for people to change their dollars into cryptocurrencies. The company teamed up with a crypto startup called MoonPay to make these transactions easier.
BinanceUS had a hard time when the market was unstable. This was made worse by less trading and lower prices after FTX collapsed in 2022.
Prior to the recent layoffs, Binance. US had already reduced its staff in September. Around 100 employees were let go at that time, and the CEO, Brian Shroder, also left the company. The company is having problems because of a legal case, and Changpeng Zhao will have a sentencing hearing in April related to a settlement with the DOJ.
Warning: This is not advice on how to trade.