Binance.US Faces Mass Layoffs and Revenue Plunge Following SEC Lawsuit: Court Transcript Reveals

Following the Securities and Exchange Commission's (SEC) efforts to halt Binance.US' operations through a Temporary Restraining Order (TRO), the exchange witnessed significant upheaval, with a reported $1 billion asset outflow, a staggering 75% plunge in revenue, and the unfortunate necessity to lay off 200 employees, constituting two-thirds of its workforce. Christopher Blodgett, an executive at Binance.US, disclosed these distressing developments during a deposition in December 2023, as part of ongoing proceedings related to the SEC's lawsuit against Binance. Blodgett highlighted the severe impact of the asset flight, not only on revenue but also on operational capabilities, as teams struggled to cope with increased workload amid reduced staff. Legal costs soared to $10 million, while auditor expenses saw a tenfold increase, further straining the exchange's financial resources. Additionally, Binance.US faced challenges with banking relationships, with banks demanding higher collateral and eventually terminating their ties altogether, hindering customers' ability to deposit and withdraw fiat currencies from the platform. Despite efforts, the exchange has yet to secure new banking partners, compounding its operational hurdles in the wake of the SEC's actions.