In June 2023, the SEC filed a lawsuit against Binance on 13 charges, including accusing Binance of offering users unregistered securities in the form of digital tokens. There were also personal complaints that the exchange’s chairman, Changpeng Zhao, was the “controlling person” of the company.
To secure the claim (TRO), the regulator demanded that all Binance assets be frozen, but the court did not agree to this, but the exchange’s relationship with the banks became seriously complicated. This led to an outflow of money, causing Binance’s US division to lose 75% of its revenue and lay off 200 people.
“After the TRO, banks demanded that we increase the guarantees drastically. But eventually they broke off the relationship completely. As a result, our customers were unable to make fiat deposits or withdrawals, effectively disrupting business,” Blodgett explained.
Source: Ferra
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