Binance, the world’s biggest crypto firm, is suffering from sprawling legal problems and an exodus of top employees.
The World’s Biggest Crypto Firm Is Melting Down
The Wall Street Journal comments The World’s Biggest Crypto Firm Is Melting Down
After FTX crashed, the world of crypto seemed to belong to the largest exchange, Binance. Less than a year later, Binance is the one in distress.
Under threat of enforcement actions by U.S. agencies, Binance’s empire is quaking. Over the past three months, more than a dozen senior executives have left, and the exchange has laid off at least 1,500 employees this year to cut costs and prepare for a decline in business. And while Binance still looms large in crypto, its dominance is dwindling.
Binance now handles about half of all trades where cryptocurrencies are directly bought and sold, down from about 70% at the start of the year, according to data provider Kaiko.
“Every battle is a do-or-die situation, and the only thing that can defeat us is ourselves,” she wrote in the message viewed by the Journal. “We have won countless times, and we need to win this time as well.”
“We have worked tirelessly not just to learn the lessons of the past, but also to continue to invest in the teams and systems that ensure user protection,” a spokesman said.
Technically Speaking
Technically speaking, the chart is a disaster.
Declining wedge patterns are bearish and the fundamental news is bearish.
Fundamentally Speaking
The U.S. Justice Department has undergone a yearslong investigation that could result in criminal charges for Binance and Zhao as well as billions of dollars of fines, according to people familiar with the probe.
Binance also faces a Securities and Exchange Commission lawsuit that alleges it and Zhao operated illegally in the U.S. and misused customers’ funds. The firm has acknowledged past mistakes but says customer money is safe and it is committed to compliance.
“Do-or-Die” Situation
Can anyone please explain why an institutional firm would still be dealing with Binance?
Yet, an institutional trader told The Wall Street Journal that his company has conducted fire drills to withdraw its assets from Binance quickly in the event of a meltdown.
Seriously, what the hell?
If there is a sudden meltdown, why would anyone, let alone an institutional player think they could quickly get out?
Don’t worry, “customer money is safe,” and they no longer misuse client funds says Binance. Lovely.
The company is committed to compliance at some point in the future, hopefully before everyone shuts it down. In Europe, more countries are shutting their doors to the exchange.
Congrats if you got in BNB prior to the surge.
But if you are still hanging on to the coin, why? And if you still have assets at Binance, you are nuts.
