Interim Chief of Binance.US Responds to SEC Fraud Allegations
The debanking of Binance.US is Operation Chokepoint in action, stated Norman Reed, the interim CEO of Binance.US.
What to know:
- Following a lawsuit from the SEC, Binance.US experienced a significant client loss and was forced to lay off 70% of its workforce.
- The exchange is now looking to resume USD fiat services in the coming weeks.
In an interview, Reed asserted that the SEC accused Binance.US of being "a cauldron of fraud" without any concrete evidence. The SEC's actions have severely impacted Binance.US's banking relationships and operational capabilities.
In June 2023, amidst the fallout from the FTX scandal, the SEC took legal action against Binance and Binance.US, citing alleged breaches of securities law. Reed emphasized that Binance.US had no involvement in the settlement reached by Binance with U.S. authorities, despite ongoing litigation with the SEC.
Reed stated, "We'll never get recompense for the damage the SEC did to us. Within two weeks of that lawsuit, we’d lost thousands of customers, and billions of dollars went out the door. Institutions and banks ran away from us because the SEC called us a fraudulent firm like FTX."
He noted, however, that there is hope on the horizon for Binance.US, as efforts are underway to revive their fiat services and attract new partnerships with banks. Reed also criticized the reputation damage the SEC's accusations caused, saying that communication with hundreds of banks had led to a blanket rejection based on the SEC's claims.
The narrative of debanking crypto businesses has caught national attention, with prominent industry figures like Marc Andreessen and Brad Garlinghouse speaking out against the regulatory environment, referring to it as a form of operation.
Reed reflected on the challenges and indicated, "At the time, I felt like I’d been nominated captain of the Titanic after it hit the iceberg, but we didn’t give up. We’re stronger today than we’ve ever been."
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