Binance.US Faces Revenue Drop and Staff Layoffs Amid SEC Lawsuit

Binance.US, the American affiliate of the global crypto exchange Binance, is facing a major setback as it struggles with a revenue decline and a lawsuit from the U.S. Securities and Exchange Commission (SEC).

Binance.US Revenue Plummets by 80%

According to a report by Bloomberg, Binance.US has seen its revenue drop by 80% in the past two months, from $18 million in August to $3.6 million in October. The report cites anonymous sources familiar with the matter, who also claim that the exchange has laid off about 40% of its staff, reducing its headcount from 200 to 120.

The revenue decline and the staff layoffs are attributed to the ongoing legal troubles that Binance.US and its parent company Binance are facing from regulators around the world, especially the SEC. The SEC has accused Binance of illegally offering securities to U.S. investors without registering with the agency, and has issued subpoenas and requests for information to Binance and its affiliates.

Binance.US Sues SEC for “Unlawful and Unconstitutional” Actions

In response to the SEC’s actions, Binance.US has filed a lawsuit against the agency in the U.S. District Court for the District of Columbia, seeking a declaratory judgment that the exchange does not offer securities and is not subject to the SEC’s jurisdiction. The lawsuit also alleges that the SEC has violated Binance.US’s constitutional rights to due process and equal protection, and has caused irreparable harm to its business and reputation.

The lawsuit claims that the SEC has “engaged in a campaign of intimidation and harassment” against Binance.US, and has “unlawfully and unconstitutionally” targeted the exchange based on its affiliation with Binance, which the SEC considers a “bad actor”. The lawsuit further argues that the SEC has failed to provide clear and consistent guidance on what constitutes a security in the crypto space, and has applied a “novel and expansive” interpretation of the securities laws that is “arbitrary and capricious”.

The lawsuit seeks a court order that would prevent the SEC from taking any further enforcement actions against Binance.US, and would declare that the exchange does not offer securities and is not subject to the SEC’s authority. The lawsuit also seeks damages for the losses and injuries that Binance.US has suffered as a result of the SEC’s actions.

Binance.US Hopes to Resolve the Dispute and Continue Its Operations

Despite the legal challenges, Binance.US has expressed its hope to resolve the dispute with the SEC and continue its operations in the U.S. market. The exchange has stated that it is committed to complying with all applicable laws and regulations, and that it has cooperated with the SEC’s requests for information.

Binance.US has also announced that it has appointed a new CEO, Brian Brooks, who is a former acting head of the Office of the Comptroller of the Currency (OCC) and a former chief legal officer of Coinbase. Brooks has said that he plans to lead Binance.US to become a “robust competitor” in the U.S. crypto industry, and that he will work with regulators to “build a bridge between traditional finance and the crypto economy”.

Binance.US is one of the largest crypto exchanges in the U.S., with over 2 million users and over $1 billion in daily trading volume. The exchange offers over 50 cryptocurrencies and supports fiat deposits and withdrawals. The exchange is also planning to launch its own marketplace for non-fungible tokens (NFTs) in the near future.