Reportedly the board of directors of Binance’s American subsidiary planned to liquidate the BinanceUS exchange, to save the parent company.
Binance is a global crypto exchange, known for its highly secured crypto trade services. In the US, this exchange provides services through a subsidiary called “BinanceUS”. In June of this year, the United States Securities Exchange Commission (SEC) sued BinanceUS, Binance & Binance CEO Changpeng Zhao (CZ).
CZ is currently serving as chair for the Binance.US board of directors & CEO of Binance.
On 1 Aug 2023, The Information that the BinanceUS boards of directors voted to support a decision, aimed to liquidate the BinanceUS platform but the majority of the vote was not in full support.
So now the decision to liquidate the BinanceUS platform has been over but if this report is 100% real then there are chances that shortly again they will consider taking similar steps, as they are aiming to save the Binance international exchange.
BinanceUS is currently not able to generate money through its core business model of crypto trading, as the BinanceUS team suspended nearly 100+ crypto asset trade pairs. So in the present time, only a limited number of people are trading Bitcoin & some half a dozen crypto assets, and this is not enough for the BinanceUS firm to survive.
Last month, several reports claimed that BinanceUS laid off huge numbers of employees to survive in these situations.
The current situation is very bad for the crypto companies to establish & run Crypto services in the US. Just a few days ago, the American publicly traded crypto exchange Coinbase’s CEO Brian Armstrong disclosed that Coinbase was ordered to delist all the crypto assets trade pairs from the platform, except Bitcoin, by the US SEC but the Coinbase team denied to follow the orders.
Update: According to Chinese crypto blogger Collin Wu, Binance CEO CZ was the main actor who was willing to liquidate the BinanceUS platform to get out of all these legal hurdles but the BinanceUS CEO opposed his decision.
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