- The lawsuit dealt a “nearly fatal blow” to operations, the COO admitted.
- Trading volume at the American branch has fallen dramatically since the lawsuit.
The US Securities and Exchange Commission (SEC) lawsuit against Binance [BNB] has proven to be a death knell for the stock exchange’s operations in the country.
Binance’s woes
According to court files Binance US, the American arm of the crypto giant, which Fortune Reporter Leo Schwartz gained access to, has laid off 200 employees since the June 2023 legal action. This was double the previously reported figures in September.
The information was revealed by company COO Christopher Blodgett in a statement in December. He admitted the lawsuit was an “almost fatal blow” to the operations of BAM Trading Services, which does business as Binance USA
Blodgett went on to say that trading volumes fell dramatically and the company’s image took a huge hit. The allegations also led to a large-scale exodus of market makers, with the number dropping from 20 to fewer than five after the lawsuit.
Consistent with the COO’s admissions, AMBCrypto noted a sharp decline in trading activity, based on data from CoinGecko.
Before the legal action, the exchange averaged more than $500 million in daily volumes. Since June, volumes have dropped between $10 million and $30 million per day.
Source: CoinGecko
The legal battle continues
The SEC hit Binance, the world’s largest exchange, then-founder Changpeng Zhao (CZ) and Binance US for violating US securities laws. In addition, the commission has alleged that Binance.US misappropriated customer assets from an entity controlled by CZ.
Since then, the legal battle has continued to be fiercely fought. In a recent one court filethe SEC accused Binance US of non-cooperation regarding the investigation into its customers’ assets.
She has asked the court to intervene in this case. Binance US refuted the allegations, saying its obligations to the regulator “went beyond that.”
How much are 1,10,100 BNBs worth today?
Binance leaves Nigeria
Meanwhile, regulatory issues continued to pile up for Binance in other regions as well.
A major development, the trading platform announced discontinuation of services in the Nigerian Naira (NGN), following increased supervision by the Nigerian government. With this move, Binance effectively closed the doors to a fast-growing crypto market.