{"id":73071,"date":"2024-03-07T04:35:22","date_gmt":"2024-03-07T08:35:22","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=73071"},"modified":"2024-03-07T04:37:20","modified_gmt":"2024-03-07T08:37:20","slug":"binance-us-coo-claims-sec-lawsuit-led-to-bank-withdrawals","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/binance-us-coo-claims-sec-lawsuit-led-to-bank-withdrawals\/","title":{"rendered":"Binance.US COO Claims SEC Lawsuit Led to Bank Withdrawals"},"content":{"rendered":"\n

Binance. US COO asserts that banks withdrew support from the exchange due to the SEC's lawsuit last year, <\/a>\u201ceffectively choking the business.\u201d<\/p>\n\n\n\n

\"\"
Binance.US COO Claims SEC Lawsuit Led to Bank Withdrawals<\/figcaption><\/figure>\n\n\n\n

According to a firm executive, Binance US suffered a “near-fatal blow” in June when the United States Securities and Exchange Commission\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> filed a lawsuit, which forced the company to lay off more than 200 employees as revenues “implanted.”<\/p>\n\n\n\n

Binance states, \u201cTo banks, we\u2019re radioactive,\u201d U.S. chief operating officer Christopher Blodgett stated as much in a December deposition attached to a court filing dated March 5 pertained to the SEC's case against the U.S. subsidiary of cryptocurrency exchange Binance.<\/p>\n\n\n\n

“One cannot fault them.” As soon as word got around that they were collaborating with Binance, “The SEC will likely issue a severe subpoena against the United States,” he warned.<\/p>\n\n\n\n

The SEC I charged Binance, Binance.US,<\/use><\/svg><\/span><\/a> and founder Changpeng “C.Z.” Zhao with, among other allegations, selling unregistered securities in June of last year.<\/p>\n\n\n\n

According to Blodgett, customers have been unable to transact in U.S. dollars because the exchange's banking partners withdrew support, and it is unable to find replacements; this has “effectively suffocated the business.”<\/p>\n\n\n\n

Blodgett stated that following the SEC's action, Binance.US saw approximately \u201c$1 billion of assets flee the platform\u201d and later had to \u201cterminate in excess of 200 people\u201d \u2014 over two-thirds of the company \u2014 after its revenue \u201cimploded on the order of 75 percent-plus,\u201d<\/p>\n\n\n\n

\"\"
A highlighted excerpt from Blodgett\u2019s deposition transcript where he claimed customer reviews cite the SEC\u2019s lawsuit. Source: CourtListener<\/figcaption><\/figure>\n\n\n\n


Trust in institutions was also undermined. Blodgett stated that the exchange had fewer than five market makers, down from over twenty before the lawsuit.<\/p>\n\n\n\n

\n
\n
\n

\u201cAt the highest level, it\u2019s dealt a near-mortal blow.\u201d<\/p>\n<\/blockquote>\n<\/div>\n<\/div>\n\n\n\n


Binance, Binance.US, and Zhao were cited by the SEC with selling unregistered securities, engaging in wash trading to inflate the exchange's volumes, and allegedly commingling user funds in an account at the Zhao-affiliated Merit Peak.<\/p>\n\n\n\n

The SEC filed a temporary restraining order (TRO) to halt Binance the day following the lawsuit. A magistrate dismissed concerns that the U.S. would transfer customer funds overseas and seize its assets.<\/p>\n\n\n\n

The Binance platform. A $4.3 billion settlement was reached in November between the U.S. and Zhao and the Department of Justice, Treasury, and the Commodity Futures Trading Commission after the two parties admitted to violating money laundering and terrorism financing laws.<\/p>\n\n\n\n

Nonetheless, the SEC maintains its allegations and continues to gather evidence to support its case against the exchange. Zhao pleaded guilty to a money laundering charge before an April 3 sentencing hearing. The consequence is a maximum of eighteen months in incarceration.<\/p>\n","protected":false},"excerpt":{"rendered":"

Binance. US COO asserts that banks withdrew support from the exchange due to the SEC’s lawsuit last year, \u201ceffectively choking the business.\u201d According to a firm executive, Binance US suffered a “near-fatal blow” in June when the United States Securities and Exchange Commission filed a lawsuit, which forced the company to lay off more than […]<\/p>\n","protected":false},"author":53,"featured_media":73074,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[834],"tags":[16420,5407,5785,14861],"class_list":["post-73071","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-binance","tag-binance-us-4","tag-changpeng-zhao-cz","tag-regulations-2","tag-us-sec-2"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/03\/SB.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/73071","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/53"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=73071"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/73071\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/73074"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=73071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=73071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=73071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}