Binance.US global market share declined from 2.39% in April to 0.6% presently.
A massive staff reshuffle is happening at Binance.US CEO Brian Shroder resigned and is temporarily replaced by Chief Legal Officer Norman Reed.
The switch occurs as Binance.US has cut down its workforce by nearly 100 positions facing a strong regulatory crackdown from the US SEC. This is Binance.US’ second round of layoffs this year, which faces significant legal and operational challenges.
The U.S. SEC accused Binance Holdings, CEO Changpeng Zhao, and Binance.US of mishandling customer funds, deceiving investors and regulators, and securities violations in June. Zhao and the companies have vigorously dismissed these claims.
Following the SEC’s actions, customers of Binance.US had difficulty depositing or withdrawing dollars. This occurred as several banking partners began to cut relations with the platform. For users of Binance.US to convert dollars into cryptocurrency, the firm required developing an alternate method as a workaround.
In March, the US Commodity Futures Trading Commission (CFTC) accused Binance and Zhao of “willful evasion of federal law.” In addition, the U.S. Department of Justice is looking into Binance, though it has not yet charged the business with any unlawful conduct.
Binance.US Declining Market Share
According to Jacob Joseph, an analyst at CCData research, Binance.US has seen a sharp decline in its market share, falling from about 2.39% in April to just about 0.6%. Additionally, the platform’s monthly trade volume has dropped below early 2020 levels. Bloomberg quoted a Binance.US spokesperson:
“The actions we are taking today provide Binance.US with more than seven years of financial runway and enable us to continue to serve our customers while we operate as a crypto-only exchange. The SEC’s aggressive attempts to cripple our industry and the resulting impacts on our business have real-world consequences for American jobs and innovation, and this is an unfortunate example of that.”
Binance Holdings, the company’s global arm, has reportedly been laying off employees in recent months.