Binance.US revenue drops 75% due to SEC lawsuit, cuts two-thirds of staff

2024-03-06 14:44:23

Collection

ChainCatcher news, according to CoinDesk, a Binance.US executive Christopher Blodgett stated in his testimony in December 2023: "After the TRO, we saw about $1 billion in assets leave the platform." This testimony is part of a recently released status update on the SEC-Binance lawsuit.

The U.S. Securities and Exchange Commission (SEC) froze Binance.US's operations last year through a temporary restraining order (TRO). The loss of $1 billion in assets led to a 75% decrease in Binance.US's company revenue and the layoff of 200 employees, which is two-thirds of its total workforce. Due to the team being understaffed, the layoffs affected the exchange's ability to respond to the SEC's document requests.

Blodgett also mentioned that the exchange's legal fees skyrocketed to $10 million, audit costs increased "tenfold," and they also lost banking relationships, which allowed customers to withdraw digital assets as fiat currency. "The SEC's allegations have severely damaged institutional trust in our platform."

(Source Link)

Related tags

Binance.US layoffs SEC

ChainCatcher reminds readers to view blockchain rationally, enhance risk awareness, and be cautious of various virtual token issuances and speculations. All content on this site is solely market information or related party opinions, and does not constitute any form of investment advice. If you find sensitive information in the content, please click "Report", and we will handle it promptly.