What will happen now? Binance is on the brink of collapse and here are the reasons

Binance US is facing a serious problem and a serious internal crisis after the start of investigations by the US financial authorities. To put the situation in context, the Wall Street Journal issued a report confirming that Binance is “melting.”

It should be noted at this point that Binance United States is a company that only operates within the US country and not Binance International, which is a company that operates worldwide and so far in 2023 has already received a few lawsuits. One of them arrived in March for alleged violations of providing asset trading services without obtaining a license to do so.

The second lawsuit was filed in June in connection with the US Securities and Exchange Commission alleging that the company is operating under the control of the international platform, which would constitute a violation of federal laws.

Binance’s difficulties and what its managers are thinking

With all these difficulties, the stock exchange had to lay off many workers in the United States. Some resignations have also become effective, such as US CEO Brian Schroder, who left the company on September 12, after showing in a presentation that the company’s income had fallen by 70% so far this year.

Regarding layoffs and resignations, Binance International founder Zhanpeng Zhao explained that they are normal things that happen in all companies. Regarding the problems that the American company is experiencing, Yi Hu, co-founder and chief marketing officer of Binance, promised that it will overcome these problems.

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Myrtle Frost

"Reader. Evil problem solver. Typical analyst. Unapologetic internet ninja."

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