Binance.US ‘imploded’ with layoffs and declining profits following SEC lawsuit, recent filings reveal.

of the U.S. Securities and Exchange Commission lawsuit Binance US last june had The company had to lay off more than 200 employees, or more than two-thirds of its workforce. ~ after all 75% decreased profits, Binance US the executive saidAccording to new court documents released Tuesday.

“Our trading volume and business across the board have collapsed,” Binance US COO Christopher Blodgett said. December deposit It was released on Tuesday. He also noted that there was no “actual illegal activity” involving Binance.US.

In court documents, Blodgett said that shortly after the SEC’s temporary restraining order, approximately $1 billion in cryptocurrency and fiat assets left the platform, resulting in a more than 75% decline in revenue in subsequent periods. Binance executives claimed that in addition to the short-term fallout, the company is suffering from a loss of customer trust, in addition to legal and audit fees.

Blodgett also said that Binance.US lost fiat payments when it parted ways with its banking partners and is having trouble finding new partners. “And who can blame them? The moment it becomes known that they are collaborating with Binance.US, they can reasonably expect to receive unpleasant subpoenas from the SEC,” a Binance executive said.

In June 2023 SEC files suit against Binance, Binance.US and its founder Changpeng Zhao have been indicted on various charges, including violating securities laws. I’ll sleep later plead guilty He resigned as Binance CEO and Binance.US board chairman for violating the Bank Secrecy Act.

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