- Binance.US has reduced its workforce by roughly 100 employees.
- The monthly trading volume on the platform is now lower than it was in early 2020.
Binance.US CEO Brian Shroder has stepped down, and Chief Legal Officer Norman Reed has been appointed to lead the company in the interim.
In response to the severe regulatory crackdown by the United States SEC, Binance.US has reduced its workforce by roughly 100 employees. The U.S arm of Binance, which is facing an increasing number of legal and operational issues, is cutting staff for the second time this year.
Severe Scrutiny by Authorities
The United States Securities and Exchange Commission filed charges against Binance Holdings, its CEO Changpeng Zhao, and Binance.US in June, saying that they had mishandled client cash, misled investors and authorities, and broken securities laws. Zhao and the businesses have denied these allegations.
As a result of the SEC’s activities, Binance users ran into trouble making dollar deposits and withdrawals. This occurred when the platform began to lose support from a number of its financial partners. The corporation was forced to come up with a solution and create a new system for Binance users in the United States.
As of March, the CFTC had also filed charges against Binance and Zhao for “willful evasion of federal law.” Binance is also being investigated by the United States DOJ, which has not yet brought any charges against the exchange.
According to CCData research analyst Jacob Joseph, Binance.US market share has shrunk substantially from around 2.39% in April to just under 0.6% now. The monthly trading volume on the platform is now lower than it was in early 2020.
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