Binance US cut 200 jobs and lost 75% revenue after SEC’s ‘near-mortal blow’

Binance US reportedly cut more than 200 jobs last year after it was dealt a ‘near-mortal blow’ when a Securities and Exchange Commission (SEC) lawsuit accused it of wash trading, diverting regulatory attention, and offering unregistered securities. 

In the wake of the lawsuit, the company reportedly suffered a 75% plunge in revenue and is struggling to find new banking partners after losing two already. In addition, the exchange reportedly has fewer than five market makers after previously being partnered with 20.  

The revelations were revealed in a deposition shared on Tuesday in which Christopher Blodgett, the COO of Binance.US arm BAM trading, is recorded giving witness statements.

Blodgett admitted, “Our trading volumes and business more generally have imploded,” and claimed the SEC lawsuit has, “At the highest level… dealt an almost near-mortal blow.”  

Binance US claimed its previously-reported layoff of 100 employees was due to regulatory pressure from the US.

“Allegations of the SEC severely undermined institutional trust in our platform,” Blodgett added, noting that reviews citing the SEC accuse Binance of misusing funds and being a bad actor.

In June last year, Binance, under former chief exec Changpeng Zhao, was accused by the SEC and US Justice Department of breaking US securities laws. Binance reached a $4.3 billion settlement with the Justice Department in November but is attempting to dismiss the SEC’s lawsuit.

Read more: A complete timeline of Binance and CZ’s tumultuous 2023

Attorneys for the SEC also accused Binance US of not complying with the regulator on Tuesday. In the legal filing, attorneys claimed that Binance has failed to provide requested discovery material and is inadequately answering questions. Binance.US claims it has “complied with its obligations.” 

Uzbekistan also sued Binance after it failed to pay an $8,000 fine. It was also reportedly slapped with a fine of $10 billion from Nigeria but the government official behind that announcement has since disputed the figure.

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