According to court documents, the American arm of Binance suffered significant financial setbacks, losing 75% of its revenue and laying off 200 employees.
These events were a direct result of the Securities and Exchange Commission (SEC) filing a lawsuit against the exchange. In June 2023, the SEC brought 13 charges against Binance, including allegations of engaging in an unregistered offering of securities through digital tokens.
The focus of the lawsuit was on the exchange’s operations in the United States and its CEO, Changpeng Zhao, as the principal decision-maker. In response to the lawsuit, the SEC requested the court to place restrictions on the defendants, including freezing assets.
However, the request was denied, but it still had a negative impact on Binance’s US division.
During a testimony in December, the COO of Binance.US, Christopher Blodgett, stated that the introduction of the Temporary Restraining Order (TRO) resulted in a significant outflow of assets worth $1 billion, both in fiat and cryptocurrencies.
