Journalist
Posted:
- Binance could face possible criminal charges in the US amid a DOJ investigation.
- Leadership turmoil, layoffs and declining trading volume exacerbated Binance’s challenges
Binance [BNB] has been one of the most popular centralized exchanges in the crypto space for quite some time. However, 2023 has not been kind to the world’s largest crypto exchange as problems have piled up significantly.
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Investigations loom large
The year started with the US Securities and Exchange Commission (SEC) filing a lawsuit against Binance. The lawsuit alleged that the exchange violated securities laws and commingled customer funds.
This legal battle created an immediate cloud of uncertainty around Binance’s operations, and the exchange vehemently disputed the mixed-up allegation.
Lately, Binance has been under the scrutiny of the US Department of Justice (DoJ). According to a report dated September 26 WSJ reportthe DoJ’s investigation now has the potential to escalate into criminal charges against both Binance and its CEO, Changpeng Zhao.
According to the report, CZ has appointed new lawyers to handle the DoJ case.
The prospect of criminal charges added an even more substantial layer of complexity to the predicament of the exchange.
Exodus of executive power
As regulatory pressure and legal challenges increased, Binance experienced a significant exodus of key executives. This trend spread to leadership positions in Russia and the US. A number of high-profile departures raised questions about the stock’s stability and future direction.
Binance also implemented major layoffs during this turbulent period. The scale of these layoffs contributed to the overall uncertainty surrounding the stock market.
Binance’s attempt to tackle FUD
In an effort to ease the growing fear, uncertainty and doubt (FUD) surrounding Binance, Changpeng Zhao (CZ) shared insights from Rachel Conlan, the exchange’s Chief Marketing Officer (CMO).
Conlan emphasized Binance’s efforts to engage with regulators on a country-by-country basis. She highlighted the exchange’s commitment to compliance and affirmed Binance’s status as the most compliant exchange in the industry.
Realistic or not, here is BNB’s market cap in BTC terms
We’re Still the Most Accommodating Crypto Exchange Today: Binance’s New CMO Sheds Light on Urgent Challenges (Exclusive)
Another interaction with CryptoPotato (😂inside joke).https://t.co/JUGB8SHcVV
— CZ 🔶 Binance (@cz_binance) September 26, 2023
Amid these challenges, Binance faced another sobering reality: a substantial drop in trading volume. According to data from The Block, the exchange’s trading volume has fallen from $556 billion to $107.8 billion since March.
Source: Het Blok
