Recent court filings have shed light on the financial struggles of Binance.US, revealing a loss of $181 million in 2022. These financial records have come to light as part of the ongoing lawsuit by the US Securities and Exchange Commission (SEC) against the exchange.
The disclosed court filings provide valuable insights into the financial state of Binance’s American arm throughout the past year. In their inaugural year of operations, the US division suffered losses of nearly $400,000.
The revelation of Binance.US’s losses has sent shockwaves through the cryptocurrency industry, following the SEC’s allegations of 13 securities law violations and claims of commingling customer funds with third-party entities.
The Wall Street Journal reported the substantial $181 million loss in 2022, derived from the court filings associated with the ongoing lawsuit. These findings offer a firsthand glimpse into the unfavorable financial position of Binance.US.
One of the charges faced by Binance is the accusation of misleading investors and regulators, along with claims of allowing US customers to maintain a presence on its platform. The lack of profitability from the US arm could potentially bolster these claims.
Despite the mounting allegations, Binance and CEO Changpeng Zhao remain resolute in their stance to contest the accusations. They have denied several claims made in the regulator’s complaint and expressed their determination to fight back. It is worth noting that Coinbase, another major cryptocurrency exchange, was also targeted in the SEC’s legal action.