Trading activity on Binance.US has experienced a notable decline during the month of September, signifying the onset of unprecedented challenges for the cryptocurrency exchange.
As of 16 September, the exchange's daily trading volume registered at $5.09 million, marking a considerable drop compared to the $230 million observed on 17 September 2022.
A particularly low point was reached on 9 September, when trading activity amounted to a mere $2.97 million.
The slump in trading activity can be traced back to a series of legal hurdles faced by Binance.US.
Following a lawsuit filed by the United States (US) Securities and Exchange Commission (SEC), which alleges violations related to unregistered securities offerings and wash trading, among other infractions, the exchange has taken the proactive step of suspending trading for over 100 token pairs.
This suspension has inevitably contributed to the sharp decline in exchange activity.
The SEC's allegations against Binance.US encompass failure to register as a broker-dealer and failure to register the offer and sale of its staking-as-a-service programme.
Concurrently, Binance.US has also grappled with internal challenges.
Brian Shorder, the former CEO of Binance.US, resigned from his position last week, becoming one in a series of global executives who have departed from the Binance group of companies in recent weeks.
In the wake of Brian's departure, Krishna Juvvadi, the head of legal, and Sidney Majalya, the chief risk officer, also announced their resignations.
Reports suggest that these departures are connected to an ongoing investigation by the US Department of Justice into Binance, its CEO Changpeng Zhao (CZ), and Binance.US.
In response to speculation surrounding Brian's departure, CZ clarified on X (formerly known as Twitter) that the executive was taking a "deserved break" and that:
"Under his leadership, Binance.US raised capital, improved its product and service offerings, solidified internal processes, and gained significant market share, all of which helped to build a more resilient company for the benefit of customers. We are grateful for his contributions."
He even commented on an X user's post.
However, Binance.US continues to face mounting challenges.
The SEC has accused the exchange of non-cooperation in the ongoing investigation, citing the production of a mere 220 documents during the discovery process.
Moreover, a recent development has seen a judge granting the SEC's request to unseal previously sealed or redacted documents pertaining to the case on 15 September.
These documents are expected to be made available to the public in the coming days, further adding to the intrigue surrounding the unfolding situation.