10/28/2023 0 Comments Kraken fees vs binance usNoah Perlman, Binance’s chief compliance officer, engaged with DOJ officials to address their concerns. In response to the WSJ report, the US DOJ raised inquiries with the exchange regarding using sanctioned banks. The recent scrutiny on Binance intensified when a Wall Street Journal report revealed the use of sanctioned Russian banks by Binance customers, further complicating matters as the Department of Justice investigates potential violations of US sanctions on Russia. The internal upheaval has also affected employee morale, with some staff members expressing their concerns directly to Zhao in a summer meeting, highlighting issues such as abrupt layoffs and severance terms. Zhao’s determination to remain in his leadership role has led to frustration among some executives who believe his departure could enhance the company’s chances of survival. Zhao, who holds the majority ownership of Binance US and the global exchange, has faced internal discussions within Binance regarding whether he should step down. These steps were seen as crucial to reestablishing banking relationships and obtaining licenses. Shroder emphasized that for the US platform to sustain its growth plans, Zhao would need to address his regulatory issues, place his US holdings in a blind trust, or sell his shares. Its CEO Brian Shroder, in a virtual meeting before his departure, disclosed that the exchange’s revenue had plummeted by 70% year-to-date, leaving executives concerned. In the US, Binance US, has seen a sharp decline in activity, leading to the departure of its CEO, legal chief, and risk head. The exchange’s market dominance has waned, with its share of directly traded cryptocurrency transactions dropping from around 70% at the beginning of the year to approximately 50%, according to data from Kaiko. Binance’s regulatory trouble has affected its performanceīinance has experienced significant turbulence in recent months, marked by a series of high-level departures and substantial layoffs as part of a cost-cutting strategy to brace for an anticipated downturn in business. A spokesperson stated that they have worked tirelessly to learn the lessons of the past and continue to invest in the teams and systems that ensure user protection. While Binance has acknowledged previous errors, it maintains that customer funds remain secure and emphasizes its dedication to regulatory compliance, a WSJ report shows. Additionally, Binance is contending with a lawsuit from the Securities and Exchange Commission (SEC), alleging unlawful operations in the US and mishandling of customer funds by the company and Zhao. Department of Justice has reportedly been investigating Binance and its CEO, Zhao, which may lead to potential criminal charges and substantial fines, individuals with knowledge of the matter reported. The outcome of these investigations and legal proceedings carries significant repercussions for the broader cryptocurrency industry due to Binance’s substantial market presence.Binance has acknowledged previous errors but maintains that customer funds remain secure and emphasizes its dedication to regulatory compliance.Justice Department has reportedly been investigating Binance and its CEO, Changpeng Zhao, which may lead to potential criminal charges and substantial fines.
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