Trading activity on Binance.US, the American offshoot of the global crypto exchange Binance, has plummeted to historic lows this month as the platform grapples with an array of unprecedented challenges.
According to data reported by Amberdata on The Tie Terminal, as of September 16th, trading volume on the exchange stood at a mere $5.09 million. It starkly contrasts the same day a year ago, when trading volume was approximately $230 million.
The decline in trading activity hit its bottom on September 9th, when Binance.US recorded a meager $2.97 million in trading volume. This sharp drop can be attributed to the Securities and Exchange Commission’s (SEC) lawsuit against Binance and Binance.US, filed on June 5th.
The lawsuit filed against the exchange alleged multiple violations, which included unregistered securities offerings and wash trading. In response, the SEC accused it of neglecting to register as a broker-dealer and failing to register its staking-as-a-service program.
In response to the lawsuit, Binance.US took action by suspending trading for more than 100 token pairs. This decision had a significant impact on the already declining exchange activity. Currently, the exchange faces internal challenges, grappling with a series of executive departures and layoffs.
Former Ripple Counsel Steps In As Interim CEO Of Binance.US
A glimmer of hope has emerged in the form of Norman Reed, former general counsel of Ripple, who has assumed the role of interim CEO at Binance.US. Reed played a significant role in the 2015 settlement between Ripple and the U.S. Department of Justice, which classified Ripple-linked XRP as a “convertible virtual currency.”
Some experts view this appointment as a potentially positive development for the beleaguered exchange, although others remain cautious.
John Deaton, a pro-XRP attorney, commented on Reed’s appointment via Twitter, highlighting Reed’s involvement in the 2015 settlement and the government’s access to XRP sales data. Deaton noted that Norman Reed’s decision to stay with Binance.US amidst the turmoil could carry positive implications, though uncertainty still looms.
Nevertheless, the appointment of Norman Reed as interim CEO adds an intriguing twist to the unfolding drama at Binance.US. While some remain cautiously optimistic, uncertainty continues to shroud the exchange’s future.