Binance Almost Closed U.S. Exchange to Protect Worldwide Business: The Information Report

Binance, the global crypto exchange, faced a critical decision as investigations loomed over its operations. As reported by The Information, the board of directors of Binance.US, its U.S. affiliate, voted on whether to liquidate the company.

However, a unanimous decision could not be reached, with Binance.US CEO Brian Shroder blocking the move. This came close to prompting Binance CEO Changpeng “CZ” Zhao to consider shutting down the U.S. arm as a measure to safeguard the broader operations of the company. 

Is Binance Fearing the Regulatory Bodies?

The company is already shaken by heightened scrutiny from regulatory bodies in recent months for its global operations. The SEC has taken legal action against Binance, Binance.US, and CZ on the grounds that they are conducting business as an unlicensed securities exchange.

Furthermore, Binance and Zhao were sued by the Commodity Futures Trading Commission (CFTC) for allegedly providing unregistered crypto derivatives products to U.S. residents. 

Additionally, In July Binance.US declared it will become a “crypto-only” exchange, delisting multiple trade pairs based in U.S. dollars. Users began leaving the exchange in droves in the weeks that followed, leading to steep price drops for Bitcoin and other cryptocurrencies.

As the legal battles continue, Binance has reportedly made significant staff cuts in its efforts to respond to the lawsuits. While no official statements have been given to the media regarding this matter, the company is taking measures to navigate the challenging regulatory landscape