Norman Reed, the interim CEO of Binance.US, described the legal actions taken by the U.S. Securities and Exchange Commission (SEC) against the company as “an unjust attack.” He highlighted how the SEC’s failure to substantiate its claims in court has resulted in significant damage, including the termination of banking relationships and disruption of U.S. dollar transactions.
Impacts of the Lawsuit Against Binance.US
In June 2023, the SEC filed a lawsuit against Binance, Binance.US, and its founder Changpeng Zhao (CZ) for allegedly violating securities laws. During this period, Binance reached a settlement agreement totaling $4.3 billion with U.S. authorities. However, Binance.US remained a separate entity, continuing its legal battle against the SEC.
Reed expressed that the situation rapidly deteriorated following the SEC’s allegations. He stated, “We lost thousands of customers, billions were withdrawn, and we had to lay off 70% of our employees just two weeks after the lawsuit was filed.” Furthermore, he noted that the pressure exerted by the SEC on the exchange has led payment processors and banks to cease their collaborations.
Reed: Justice Must Prevail
Reed announced plans for Binance.US to resume U.S. dollar transactions and that discussions with new banking partners have commenced. He argued that the SEC’s allegations were baseless and that their lack of evidence became evident in court. “They accused us of defrauding our clients and misusing accounts, but failed to provide any proof,” he asserted.
Additionally, Reed mentioned that Binance.US was thoroughly examined by other U.S. regulatory bodies, including the Department of Justice, CFTC, OFAC, and FinCEN, with no issues found. “Despite these facts, the SEC continued its assault against us,” he stated. Reed, a former SEC employee, questioned the agency’s impartiality, stating that it should fulfill its duties honestly but has exhibited a clear bias.
Reed emphasized that Binance.US has maintained a strong stance despite the SEC’s pressure, reiterating the company’s determination to achieve its future goals. He concluded with a statement that this experience will serve as a lesson for the business world someday.
