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