Binance is in a vulnerable position due to pressure from US regulators. If after the collapse of FTX the platform accounted for 70% of all trades on the crypto market, that figure has now fallen to 50%, according to Kaiko, The Wall Street Journal reports.
Journalists recalled the layoffs of more than a dozen senior executives and at least 1,500 rank-and-file staff as part of optimization and preparation for a downturn in the business.
“Every battle — is a “do-or-die” situation. The only thing that can defeat us, — is ourselves. We have won countless times, and we must win this time,” — said Binance co-founder He Yi.
The events at the exchange will have far-reaching consequences for the crypto industry given its scale, the journalists noted.
Industry participants and observers say that other players are ready to fill the platform’s market share. In the near term, market liquidity could evaporate, which would be reflected in falling prices, they suggested.
An unnamed institutional trader told The Wall Street Journal that his firm had carried out “fire drills” to quickly move its assets out of Binance in the event of the exchange’s collapse.
“You simply cannot quantify what would happen to the industry if the exchange disappeared, given that it has spurred a huge amount of innovation and growth,” — said Anthony Georgiadis, managing partner at Innovating Capital.
Sources familiar with the matter at the U.S. Department of Justice told the publication that, following years-long investigations, Binance could face billions in fines, and its CEO Changpeng Zhao (CZ) could face criminal prosecution.
The platform also faces claims from the SEC.
“We have been actively working to learn from the past and continue investing in teams and systems that provide user protection,” — said a company spokesperson.
According to an internal presentation from the exchange, Binance.US growth prospects are limited due to Zhao’s ties to the business and the current regulatory environment.
The realization of the company’s roadmap could occur if CZ sold his shares or placed them in a blind trust.
5 июня SEC подаела в суд на Binance и Чжао, выдвинув 13 обвинений, в том числе о продаже незарегистрированных ценных бумаг. 6 июня регулятор направил ходатайство о заморозке цифровых активов американского подразделения биржи.
9 июня пользователи утратили возможность депонирования долларов, что вызвало продажи со стороны желающих вывести средства в фиате. На фоне этого на платформе сформировался дисконт в котировках биткоина в паре с долларом — показатель достиг ~$2200 (7,3%).
17 июня SEC и Binance заключили соглашение о клиентских средствах в США. Биржа возобновила вывод активов, однако в компании предупредили, что ситуация может измениться.
Позднее ведомство обвинило Binance.US в нежелании сотрудничать. По мнению регулятора, действия платформы нарушают договоренности между сторонами о запрете вывода средств за границу.
По утверждению ведомства, холдинговая компания биржи — BAM — затягивала подготовку запрашиваемых документов. Суд отказался обязать американское подразделение Binance предоставить SEC расширенную информацию касательно обработки активов клиентов. В самой компании назвали запросы регулятора «слишком широкими» и «неоправданно обременительными».
In September, Binance, Binance.US and CEO Changpeng Zhao filed motions to dismiss the SEC’s lawsuits, citing the regulator’s “implausible” arguments.