- Following the SEC’s action, Binance.US experienced 200 layoffs, a 75% decline in sales, and a $1 billion asset exodus.
- The exchange’s activities were impacted heavily by lost banking relationships, auditor fees, and litigation costs.
The SEC’s charges of violations of securities legislation caused Binance’s US arm to suffer losses, according to Christopher Blodgett, COO of the subsidiary.
Blodgett described the SEC case as a “near-mortal blow” and stated that it had a significant negative impact on the division in a newly made public deposition from December 15. Consequently, since June, the company has had to let go of almost 200 workers or about two-thirds of its workforce.
In June of last year, the SEC filed a lawsuit against Binance, naming BAM Trading, the company that runs Binance’s US branch, as well as co-founder Changpeng Zhao. BNB and BUSD, according to the agency, are unregistered securities. Furthermore, BAM Trading’s staking program was defined as an investment contract, which is a type of security according to the SEC.
The SEC asked for a temporary restraining order (TRO) against the entities as part of its case.
According to Blodgett, the order resulted in the removal of around $1 billion worth of assets from the platform, both fiat and cryptocurrency. He went on to say that the charges severely damaged institutional trust in Binance.US.
Binance also recently suspended all its operations in Nigeria and the popular exchange has a history of regulatory troubles.
Binance has tried new bizarre marketing campaigns to attract new customers. With the launch of its new luxury scent, Crypto, Binance unveiled its most recent initiative to promote the involvement of more women in the sector by fusing luxury products with finance.
To increase the company’s diversity, Binance’s female marketing executives stated that they will be launching a marketing campaign featuring a luxury smell in time for International Women’s Day on March 8.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
