- The lawsuit dealt a “near-mortal blow” to operations, the COO admitted.
- Trading volume at the US arm fell dramatically since the lawsuit.
The U.S. Securities and Exchange Commission’s (SEC) lawsuit against Binance [BNB] has proven to be a death knell for the exchange’s operations in the country.
The woes of Binance
According to court filings accessed by Fortune Reporter Leo Schwartz, Binance US, the American arm of the crypto behemoth, laid off 200 employees since the June 2o23 legal action. This was double the previously reported figures in September.
The information was revealed by the company’s COO Christopher Blodgett in a December deposition. He admitted that the lawsuit dealt a “near-mortal blow” to the operations of BAM Trading Services, which does business as Binance US.
Blodgett went on to say that trading volumes fell dramatically and image of the company took a massive beating. The allegations also led to large-scale exodus of market makers, with the number plunging from 20 to less than five following the lawsuit.
In line with the COO’s admissions, AMBCrypto noted a sharp fall in trading activity, based on CoinGecko data.
Prior to the legal action, the exchange was averaging more than $500 million in daily volumes. Since June, the volumes have languished in the range of $10 million – $30 million per day.
Source: CoinGecko
Legal tussle carries on
The SEC hit Binance, the world’s largest exchange, the then founder Changpeng Zhao (CZ), and Binance US for violation of U.S. securities laws. Along with this, the commission has claimed that Binance.US misappropriated customers’ assets with an entity that is controlled by CZ.
The legal battle has remained hotly-contested since then. In a recent court filing, the SEC accused Binance US of non-cooperation in relation to the inquiry into its clients’ assets.
It asked the court to intervene in this matter. Binance US refuted the allegations and said it went “above and beyond” its obligations to the regulator.
How much are 1,10,100 BNBs worth today?
Binance exits Nigeria
Meanwhile, regulatory troubles continued piling for Binance in other geographies as well.
In a big development, the trading platform announced discontinuation of services in Nigerian Naira (NGN), following increased scrutiny from the Nigerian government. With this move, Binance effectively shut the doors on a rapidly growing crypto market.