Binance.US, the American arm of the world’s largest cryptocurrency exchange, is facing significant challenges due to a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) last June. In a recent court filing, Binance.US claims the lawsuit has dealt a “near-mortal blow” to their business.
The SEC lawsuit alleges that Binance.US offered unregistered securities through certain crypto products. Binance.US vehemently denies these charges. However, the lawsuit itself has had a chilling effect on the company’s operations.
According to a December deposition by Christopher Blodgett, Chief Operating Officer of Binance.US, the company has been labeled “radioactive” by banks. This fear of regulatory scrutiny has caused banks to pull support, making it difficult for Binance.US to conduct basic business operations.
The lawsuit has also resulted in significant financial strain. Blodgett’s deposition reveals that Binance.US was forced to lay off over 200 employees and experienced a dramatic drop in revenue following the SEC action.
The situation highlights the ongoing tension between cryptocurrency companies and regulators in the United States. While Binance.US maintains its innocence, the legal battle has undoubtedly hampered its ability to function effectively.
The outcome of the lawsuit remains uncertain. However, the SEC’s actions have had a profound impact on a major player in the cryptocurrency industry. This case will likely be closely watched by other companies in the crypto space, as it could set a precedent for future regulatory actions.
It’s important to note that this is just one side of the story. The SEC likely has its own reasons for pursuing legal action against Binance. US. As the case unfolds, it will be crucial to stay informed about all sides of the argument to form a complete picture.
