The SEC’s (Securities and Exchange Commission) attempt to freeze Binance last year.According to an executive who testified in court, the company’s activities under a Temporary Restraining Order (TRO) in the US caused massive layoffs as sales collapsed and it battled with market trust.
“We saw somewhere in the neighbourhood of $1 billion of assets flee the platform, crypto, and fiat in the immediate aftermath of the TRO,” Binance.US executive Christopher Blodgett stated in a December 2023 deposition that was recently made public as part of an update on the SEC-Binance lawsuit.
At Binance’s U.S.-incorporated division, this $1 billion asset loss resulted in 200 layoffs, or two-thirds of the workforce, and a 75% drop in income. Due to staffing shortages, the exchange has been less able to reply to SEC discovery requests as a result of the personnel decrease.
Blodgett also reported that the exchange lost banking links that permitted users to convert their digital assets into fiat currency, and that its auditor fees had jumped by a factor of ten. The exchange’s legal expenses reportedly surged to $10 million.
“Our banks wanted significant increases in collateral immediately following the TRO. But ultimately, they called it quits on their romance. Consequently, our clients were unable to contribute and remove cash from the platform, so stifling the enterprise,” he stated.
Blodgett stated that the exchange hasn’t been able to identify new financial partners to collaborate with since then.
“We’re radioactive to banks,” he declared. Is it their fault? the moment it’s revealed that they’re collaborating with Binance.US, they should be prepared for an unpleasant subpoena from the SEC.