Topic: Binance's Growing Legal Troubles: Are They Facing a Crisis? (Read 350 times)

I found the article I published on Russian-language information sites, with the assumption that it would not be too difficult to make an online translation into the language of the reader
If we get back to the topic, I would not call it a "targeted attack on Binance". Whether we like it or not, we need to assess the situation realistically. There have been many well-reasoned claims against Binance in recent years. And it should be recognized that Binance did not make any significant attempts to change the situation and settle it before the strict measures were introduced against them. It is always possible to find a compromise between earnings and the requirements of the legal framework of those countries where you provide these services, or in relation to the citizens of those countries that require, legally, to comply with their legal framework in relation to users of Binance platforms who are citizens of such countries.

SEC clings to such accusations to everyone it can. Do they really want to sue more money for the benefit of the budget?

Changes, not consequences, will emerge from these legal battles. But I don’t think that CZ won’t come up with anything to get out of this mess without losses. Binance is no longer a small company, but a huge corporation with the same enormous resources and capabilities. I am sure that Binance will find a way to prevent SEC from defeating them.

It is unlikely that Binance follows the scenario of FTX.

They can.

I saw this news in my feed and it immediately made me to change my stance from Binance legal troubles are "not an issue", to "binance is in deep trouble".
No other exchanges have faced this in europe, crypto.com visa card keeps working just fine. So this is definitely personal attack against Binance alone.

I am not sure why you posted not-english link to english section, as there are lots of english links available.

I made a thread about it earlier:
https://bitcointalksearch.org/topic/m.63028697

...."The Binance cryptocurrency exchange notified customers that it will cease issuing and servicing the Binance VISA debit card from December 2023. The reason for this decision was the closure of UAB Finansinės paslaugos Contis, the Lithuanian subsidiary of the British electronic payment operator Contis Financial Services. From December 20, UAB Finansinės paslaugos Contis will no longer be able to support the Binance Card VISA debit card program. "The Binance VISA Card will no longer be supported as of December 20, 2023. The restrictions will affect no more than 1% of our users. Exchange accounts of Binance VISA Debit Card holders will continue to function in normal mode,” said a representative of the exchange...."

https://bits.media/binance-prekrashchaet-podderzhku-debetovoy-karty-visa/

Further, they write that they recommend switching to the “safe cryptocurrency payment technology Binance Pay.”, but it seems to me that the issue is not about security, but about some legislative nuances that may follow in relation to Binance, and this is a “nice move” proactively so that then the picture didn’t look negative.

More than just a legal battle, any clamp down on Binance and its operations isn't just a clamp down on Binance alone but in the world of crypto currency exchanges, as Binance is currently leading that wing of the space. Its also a direct attack on the trust in the space as Binance has also contributed greatly to the success of global adoption of the blockchain technology.

This doesn't in anyway mean that Binance can not be investigated, but it should not painted as an exchanger with shady deals until it is proven to have violated some rule of law. This is not the first time Binance is going under the knife and I believe it won't be the last, so, its not new to me.

And I don't think that CZ is just going to sit and not answer the case by the SEC against them. Even here in our country, Binance has also been in the radar of our government. But so far no legal case has been pursue against them although we have been warned in dealings with Binance specially their P2P as there are a lot of scammers (I almost fell victim to it).

In any case though, it really up to us, we all know all that we shouldn't trust anyone here, even as big as exchange as Binance is. So just like you said, we should keep our bitcoins in our own wallet, that we have total control of.

Is this another new phase of challenge with Binance and the SEC or the old existing one that have already been discussed, I wish OP could just have given a reference link on this information for further clarification, however, for those using Binance, it's up to them to decide in using it continuously or changing it for a non custodial wallet, tine and good many do use the excuse for performing trades with the use of Binance but we shouldn't let all our Investment asset be on thesame exchange, they have been finding it difficult with SEC and we don't know what may be the end of this.

Lawsuits are not uncommon when it comes to settling disputes in the financial area, including crypto business area. I don't think that the SEC suing Binance automatically means that Binance committed any crimes, or that Binance will go down the FTX road. With FTX, there was a clear problem of people losing a lot of money and circumstantial evidence that it may not have been a legitimate bankruptcy. But Binance seems to be doing well in that regard, so even if Binance loses the case, I think they'll just end up paying a lot of money, but they'll stay in business and remain a major exchange.
That being said, I totally agree with others in the thread that remind everyone that it's best not to keep BTC on centralized platforms.

Binance have platform with US where the United State Citizen can use that exchange for trading or investing in cryptocurrency, I don't think any difference feature between Binance US or Binance.com as global due both site have the same company operation. But have legalize with United State regulation for all United State citizen not allowing for investing or trading their cryptocurrency investment trough Binance.com and they have use Binance US.

I don't with United State Citizen will leaves Binance US due not any problem facing yet and all withdrawing, deposit process running normally without get difficult withdrawing fund.

I think regulators see Binance as the King Daddy exchange, what other reasons could they have to be so heavy handed. Where was this big dick energy towards FTX? Oh, I forgot, SBF paid politicians & maybe CZ doesn’t. Obviously never leave too much of your stash on exchanges but so far, Binance has proved to be very trustworthy over a long time. They have passed all proof of exchanges questions, I don’t see a reason to witch hunt them unless it’s an order to regulators from above that Binance is disturbing fiat world controls.

Saw coffeezilla's take on this and I might just have some second thoughts on the credibility of Binance, not just Binance USA. It's a little scary how they're taking shots for someone that barely makes any presence in the crypto industry (Justin Sun who is a fucking nutjob and the sketchiest person in the crypto world right now). Whatever that may be I'm thinking they have collusions and this might mean despair for everyone and binance in particular. After seeing this I shit you not I took all of my assets from Binance and redistributed them to my other hot wallets. To think that I even stood by them when CEXs are getting fingerbanged in this forum no thanks to SBF. In any case, investigation is still necessary, I think we'll find our answers sooner or later.

In addition to Ripple winning against the SEC, Grayscale also won the SEC. If they were able to face it, and Binance can for sure face it bravely, then they have overcome many things, like such issues a few years ago. So it seems normal that the problems they face are normal.

Although I can't deny that this will somehow affect the price value of BnB in the crypto market, But I personally still believe that Binance will overcome this. Binance may be in big trouble right now, but I don't think it is in a crisis situation. Everything is still under their control, as far as I can see.

Binance is indeed fazing significant legal challenges and scrutiny from regulatory authorities, and its ability to regain trust in the crypto industry remains uncertain. The departure of key executives at a critical time raises concerns about the company's internal dynamicz and its handling of the situation. While it's challenging to predict the future with certainty, there are several factors contributing to the belief that Coinbase could potentially surpass Binance:

Regulatory Compliance, Coinbase has been proactive in adhering to regulatory requirements and obtaining licenses, positioning itself as a more compliant and trusted platform in the eyes of regulators and investors.

Transparency, Coinbase's approach to transparency in reporting and customer communication has been seen as a positive, especially when compared to the legal challenges faced by Binance.

US Market Focus, Binance's legal issues in the U.S. may limit its ability to operate in one of the world's largest cryptocurrency markets, while Coinbase has established a strong presence there.

Customer Trust, Coinbase's reputation for security and reliability may continue to attract more users, especially those concerned about regulatory compliance and the safety of their assets.

While Binance's future is uncertain, Coinbase's focuz on regulatory compliance and transparency may position it as a more trusted and stable platform in the eyes of users, potentially leading to its surpassing Binance in the future.

Binance has a US website and struggles to comply with regulatory restrictions and responds to all government requests, so I don't think they will leave the US market easily. .US seems safer and has less violations or manipulation than .com because the eyes there are watching most suspicious movements.
binance.com controls a lot of things, so their collapse will not be simple or quick, and so far there is no real competition from the rest of the platforms, so at least they will exist without problems for the coming years and may survive the coming winter.

Well the sec lost against ripple. based on that case I could agree with you that bnb is not a security.

but binance may need to go to court to win out.

This case will be an interesting legal battle. I am more confident that the courts in the US will deliver a fair judgment. The matter is a regulatory issue and Binance is arguing that the SEC failed to establish clear laws for the sector. Most of the charges against Binance might be dropped because they don't fall within the regulatory jurisdiction of the SEC.   


The SEC and Commodity Futures Trading Commission (CFTC) have not fully understood their roles as the regulators of the cryptocurrency ecosystem. So we will keep on having these litigation issues until both commissions develop a comprehensive framework that guides the US cryptospace. 


These litigation issues and managerial drama should serve as a warning to people who keep their funds in centralised exchanges. The government can come up with any drastic decision that can make them lose their funds. The resignation of these top officials of Binance shouldn't be taken for granted because they left because of some important reasons. Binance’s Head of Asia Pacific Market, Leon Foong has also resigned and the reason for his departure was also kept secret.

What exactly do you fear though? Are you afraid that the market will crash, or are you afraid because you own a lot of BNB? If it is the former, then that should be expected regardless if Binance fails or not. Even simple misinformation can cause crypto prices to go down. Besides, saying a company is too big to fail is not a good mindset since it sounds like you have a reliance on them. Just be prepared and do your own risk management as usual. Not the first time a big company is crashing down as mentioned above. If it is the latter then just prepare a cut-loss accordingly, don't store your wealth on a token like BNB if you want security.

I also don't think this is a trust issue since customers are still using them regardless of what the SEC does. You can't really affect how their legal process works afaik. It would be better to stop worrying about their future and start practicing better security and trading practices if I were you.

I do not defend Binance but you don't understand the situation well.

Binance smelled the risk and after the trade war between the USA. and China started a few months, they launched Binance US. to reduce risk and impacts from regulation in the USA. to their exchange. I hope now you can understand the situation better. Risk is for Binance US., not Binance (global).

There are many investigations, fud and maybe some are real discoveries too but before all things are bringing in light, we can not conclude anything. To protect our money, we don't need to make any solid conclusion.

The advise is always "Not your keys, not your coins"

Reminder: do not keep your money in online accounts

It will just be an over-dramatized problem later.
It's not over yet, but when the crypto market starts shaking again, issues like the SEC and Binance lawsuits will surface again if not resolved soon.

People have already forgotten about this case and even the major media outlets are not talking about it anymore.

The crypto space is indeed fast-paced and will be replaced with new trends and some new problems that arise.

Binance is certainly trying to keep the legal dispute from destabilizing its crypto and exchange services.
Binance has a lot of money, has a lot of lawyers who can resolve disputes properly without adverse effects on its business.

I don't see their legal troubles an an issue. People seem to have already forgotten those as things in crypto space happen such a fast pace.
And they have so much money to fight and this in the court, that they either win, or i will be old man until this is over.

This has always weirded me out, so i am glad i wasn't the only one. It's like some weird futuristic flee market with everything if you can find it. They should find some minimalistic web designer to make the whole experience more natural. I have visited very difficult sites in my lifetime, but binance gui makes still least sense.

Coinbase worths about 17 billion dollars as a company, and that is today with all the bear market and the bad economy in the world, they were about five times bigger than this at their peak, which was about 100 billion dollars market cap give or take. Why am I talking about Coinbase? Well that's a company that is mainly USA based and has around %20 of what Binance does in volume, they are even second and yet still barely at %20, not even that, more like %15 volume. So if we are talking about peaks, if 100 billion was the peak of Coinbase, then Binance must be around 300-400 billion range easily at the top, and even right now it should be somewhere over 100 billion easily, could be near 200 billion to be fair. Why does that matter in this situation? Well simply because no legal trouble could make them go away, no company that worths 100-200 billion, with a potential to double that even triple that easily could ever have legal troubles. They would hire not just the best lawyers but you can bet that they can hire the best judges as well, bribery is nothing for a company like that.

You should have provided a source into your information because I'm not sure if this is a new charges or you're discussing another one from the already existing case they had in court with Binance. I don't support a Binance a bit but I think SEC are turning into a donut that want to see the end of something if they don't like it, when they want to carry out investigations, they take it personal and that makes me think what happen inside between CZ and SEC sometimes.


Didn't Binance announced that they want to stop registration from UK customers yesterday? I believe it was due to regulators request. If Binance stop operation in US, they will still be doing fine. Not like Binance dot US is a global one, they have separate exchange and I believe they don't get quarter of what they get in the Binance global because Coinbase own US, they should move on if SEC insist except if there are personal issues the media is not reporting.


Having a independent financial system is threat to US, even if Binance were to do everything request from SEC, they will still hunt them because CZ and Binance is not control by the US government, that they don't like. If the US want something from you and they don't have it, be ready for their frustrating part especially when you want need them to flourish.

Well, if Binance lost both it's US and Russia users, then it's another story. With this recent news, I suppose Binance is already prepared for leaving Russia, then they should fight harder to keep their permit to operate in the US. If they lose both Russia and US at the same time, I doubt they will survive another couple of years, even if they can get to other new countries.

Binance has been through a lot, but as you can see in its several years of existence, there are still many people who trust the Binance platform. Everything that Binance is going through, they are overcoming little by little.

How many times has it had issues with hacking? How many times have they solved it somehow? They still maintain the trust of the community in this industry even though that happened. That's because they have established trust in the cryptocurrency community.

It's undeniable that Binance is currently facing some significant legal challenges that have raised concerns within the crypto community. It is a major player in the crypto space, and its fate will undoubtedly have an impact on the industry as a whole. It will need to address these allegations and cooperate with relevant authorities to ensure they are in compliance with the law. I think Binance is still profitable, this gives more resources to fight the legal battles and weather the storm.

As a Binance user, it's reasonable to be concerned about these developments. For me, rebuilding trust takes time but it's not impossible and will require a lot of work, it can recover from such situations but it requires commitment to compliance, transparency, and making amends where necessary.

Binance will still be the biggest exchange in decades, they may be caught in turbelence but they will survive. The argument that XRP did to win against the regulator will also apply to Binance token.

The company have been battling SEC, for a long time and Binance is much richer than Ripple Labs. They've been in the business for a long time and collected more wealth than Ripple team.

They have faced regulatory problems in various countries since years ago, and yet they still doing business as usual, and since they aren't a US-based business, I doubt the US govt will shut down Binance. Probably they will close their shop before being taken down by the government since unregulated businesses are prone to embezzlement and stuff. My prediction is that they will not exist 10 years in the future, either being shut down or because they steal people's money. It's difficult to predict when they will collapse really, just store your money in your wallet.

Binance losing or regaining trust is not dependent on the SEC's attacks. They've been consistently giving their userbase convenient ways to trade and I bet they will still prefer to use this exchange even if SEC wins.

Not having US customers will have a bigger impact more than you imagine since Binance also exited Russia due to similar legal concerns as reported https://www.coindesk.com/policy/2023/09/27/binance-to-sell-entire-russia-business-to-commex/ The sale seems shady but that's another topic for discussion.

While concerning, I don't think Binance is on a hot bed right now, especially when you consider the fact that BNB isn't even a security. SEC is pretty much throwing whatever they can to undermine the cryptocurrency scene in the US in favor of their CBDC, which is arguably inferior and less enticing than the superior cryptocurrency system that we have built for over a decade. Binance is going to weather the storm and gain traction once again the US. and if it couldn't, it's not going to be much of a problem, especially now that the US economy is on the shitbox so they can't really provide as much financial upturn for Binance. China is the name of the game now, as well as other neighboring countries, should we see changes in the outlook of China towards crypto, we can pretty much disregard this whole SEC conundrum altogether.

To be fair, SEC is targeting every established US exchanges though one could say binance is getting a lot of points in particular. I wouldn't say this reminds me of FTX though, which collapsed because of fund management/accounting issues and eventually turned insolvent. In addition, this is only their US arm.

However as a precaution, you should always consider the possibility that your go-to CEX could crumble at some point hence tread your actions carefully. Most common advice is to not use exchanges as a means of storage.

Even though Binance and FTX are both centralized exchanges, I don't see what they have to compare, what's happening with Binance is completely different from FTX. FTX is a thief, they planned to appropriate investors' assets and SBF is facing a criminal lawsuit that has entered its 8th day and it is difficult to escape the crime. While binance is facing a series of meaningless troubles from the SEC and European legislature.  Simply because Binance is growing too fast and needs to be restrained before letting them expand further. Binance's market share is dropping significantly but saying it will collapse like FTX is nonsense.

Did they have crisis or not?
Have they resolved their crisis or not?
Will they reclaim their trust or not?

It's not your problem, it's theirs. Your task is DO NOT store your coins on Binance or centralized exchanges.

Reminder: do not keep your money in online accounts.

It's definitely not a small problem for Binance, but I doubt that Binance will fall into Crysis, even if they actually got banned in the U.S. Eventho currently U.S is on the top 5 country of Binance traffic, but it only took as much as 3,95% of the total Binance traffic, it's not small amount, but not too big to bring binance down into crysis.



I am not a regular Binance user, because I don't like overwhelming UI, but I doubt their non-US regular customer will move on from Binance even after they got banned in the US. And I suppose Binance will still run without U.S users.

If you provided the source link, we could have read more about this, but I knew that the USA SEC has been dragging Binance for violating some security laws for a long time now, and this is also affecting the crypto market movement because if Binance falls today just as FTX did, the market will be bitterly affected and many people will lose so much money to crypto.
Decentralization is the only solution to all these allegations and threats because, in a decentralized system, no one will threaten to leave the exchange because they know that they hold a big share of it.

Okay this part totally tells you that the SEC is bullshitting pretty hard eh. iirc BNB wasnt even securities at all and why do people always seems to take SEC seriously at all. Its part of their job to go hunt on every crypto exchanges to make sure they follow their rules from A to Z and as for binance, they are the biggest crypto exchange as of now so they are the main target for SEC to chew on therefore there will be tons of allegation in the future as well


Not a threat at all, perhaps binance should even leave US and close all their US customer account to stop themselves from having to deal with all those bullshit from SEC

I think legal challenges often serve as a litmus test for any organization, and Binance is currently under the magnifying glass. The SEC has come down hard on Binance, bringing forth 13 charges related to securities violations. These charges revolve around allegations of wash trading and the illegal sale of BNB and BUSD tokens as unregistered securities.

Even before the SEC lawsuit, two key figures at Binance, CZ  and former Chief Compliance Officer Samuel Lin, were charged by the CFTC for their questionable actions. The CFTC has not only issued charges but seeks to impose a payment trading and registration ban on the exchange, which would effectively mean Binance could no longer do business in the U.S. These legal battles are no trifles, and the implications are profound.

The situation at Binance reminds us of a familiar tale: FTX. Is Binance headed down the same path? One thing that can't be ignored is the timing of key personnel departures from Binance. What's even more intriguing is the timing of key personnel departures from Binance. Several high-profile executives, including  its Chief Strategy Officer, President of Compliance, and General Counsel left Binance in what appeared to be a coordinated move. While the official statement cites personal reasons for their departures, rumors suggest that these executives were not satisfied with CZ's handling of the DOJ  investigation. The timing is indeed peculiar and bears a striking resemblance to the situation that unfolded before FTX's collapse when Sam Trabucco left Almeda Research.

In the crypto world, things move fast. I think Binance is facing its biggest threat and I for one am terrified of what's to come, but they can never go down like ftx. Can Binance regain trust?