While CZ, the head of the Binance exchange, dismissively waves away concerns, assuring everyone that the turmoil surrounding BinanceUS is merely FUD, the grim statistics tell a different story. On September 16, the trading volume for the Binance US branch plummeted to $5.1 million, a consequence of restructuring and the departure of CEO Brian Schroeder. To put this in perspective, the trading volume was $230 million just last year. The lowest trading volume for this month, a mere $2.97 million, was recorded on September 9.
Earlier, on June 5, the SEC filed a lawsuit against Binance and CZ, leveling 13 charges against them, including the sale of unregistered securities. The very next day, June 6, the regulator suggested freezing the digital assets of the exchange’s American branch. By June 9, customers were unable to deposit dollars, prompting those eager to cash out to sell. This resulted in a dip in Bitcoin prices on the platform, with a discount reaching approximately $2200 (7.3%).
On June 17, the SEC and Binance came to an agreement concerning client funds in the US. The exchange resumed withdrawals but hinted at potential future changes. In September, following Schroeder’s exit, the heads of the legal and risk departments, Krishna Juvvadi and Sidney Majalya, also departed. The SEC subsequently claimed that BinanceUS had breached agreements by moving funds out of the country. Amidst this whirlwind of events, which could easily inspire a Netflix drama, CZ remains defiant, asserting that Binance is outperforming all competitors. It’s worth noting that the ever-optimistic Sam was similarly enthusiastic before the downfall of FTX.
