With over 100 million users, Binance easily takes the title of the largest cryptocurrency exchange in the world. If the CZ exchange were to fall on the initiative of American regulators, the others (Kraken, Coinbase and others) will melt like snow in the sun. And apparently, the US Department of Justice prepares to launch an assault against this crypto behemoth with feet of clay.
Binance about to be attacked by the DOJ
THE semblance of calm provoked by Judge Faruqui’s injunction to find common ground between Binance and the SEC worries observers. The crypto regulator is not the type to be defeated so easily in a battle. The Ripple case reminds us what it is capable of even in the event of proven victory.
“ WSJ: The US Department of Justice has been conducting a years-long investigation that could lead to criminal proceedings against Binance and its co-founder Changpeng Zhao. Binance and the Department of Justice have been in talks for months. Zhao brought in new lawyers to handle the DOJ case. »
L’WJS article associated with this tweet, highlights a final end for the largest cryptocurrency exchange platform. The legal attacks perpetrated by the American financial policemen, SEC and CFTC, are in fact akin to a overview of the fate reserved by the American government for Binance.
Will the DOJ, which reportedly began investigating CZ’s crypto exchange four years ago, finally enter the fray to give the final blow ? Analysts seem more and more worried about it.
According to PYMNTSan institutional crypto trader has already taken the necessary precautions to avoid all forms of damage linked to the collapse of Binance. So, he and his company did not hesitate to make “ rapid evacuation drills » of crypto-assets from this centralized exchange (CEX) recently.
“ It’s simply impossible to quantify what would happen to the industry if Binance disappeared, given that it has been responsible for a large amount of innovation and growth. », Specifies Anthony Goergiades, general partner at Innovating Capital.
Game over imminent? The conditions are met
It is therefore time for speculation, or even preparation, for certain investors in cryptocurrencies registered on Binance. Lots of signals indeed demonstrate that this crypto giant is approaching the terminus:
- departures recent senior executives;
- mass dismissal employees (at least 1,500 this year alone);
- questionable liquidations at the crypto exchange level;
- regulatory challenges accentuated by an SEC that has become very aggressive towards the cryptocurrency industry;
- drop in bitcoin transaction volume leading to upheavals throughout the cryptosphere;
- BNB in lethargic state;
- etc.
In other words, Binance had been weakening since the beginning of the year. Changpeng Zhao’s company can no longer even manage about half of cryptocurrency transactions Right now. While at the start of the year, it had captured 70% of purchases and sales of crypto-assets.
Zhao may reassure the crypto community about the solidity of Binance, but nothing helps.
His lieutenants also go to the front. To name only Yi He, co-founder and marketing director of Binance, who did not fail to invite his colleagues to fight until the end.
“ Every battle is a do-or-die situation, and the only thing that can defeat us is ourselves. We have won countless times, and we must win this time too “, he argued.
Binance, which had to get rid of the CEO of Binance US, Brian Schroder, replaced him with a person capable of confronting crypto regulators. In addition to Norman Reed, former head of the SEC, CZ has also just strengthened its legal team. Is this enough to protect ourselves against this risk of imminent collapse controlled by the American government?
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