Binance.US CEO Issues Warning on SEC’s Crypto Crackdown Strategy

Binance.US interim CEO Norman Reed has accused the SEC of targeting the exchange without substantiating claims of fraud.

He argued that the regulator’s actions, which disrupted banking relationships and stifled operations, are part of a wider effort dubbed “Operation Chokepoint 2.0” to restrict the crypto industry.

The SEC’s lawsuit against Binance.US, Binance Global, and founder Changpeng Zhao in mid-2023 alleged securities violations. While Binance Global reached a multi-billion-dollar settlement and Zhao faced legal consequences, Binance.US was excluded and remains entangled in legal battles. According to Reed, the aftermath has been devastating, with customer withdrawals, layoffs, and operational challenges undermining the exchange’s stability.

Reed further alleged that the SEC pressured banks and payment providers to distance themselves from Binance.US, likening it to a covert campaign to isolate crypto businesses. Despite accusations of mishandling funds, SEC lawyers reportedly admitted in court that they lacked evidence of fraud.

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The term “Operation Chokepoint,” frequently referenced by industry leaders, describes what many see as an orchestrated effort to choke off financial access to crypto firms. Reed maintains that such actions have caused irreparable damage to Binance.US and the broader industry.

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Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.