Is the US DOJ Going to Crack Down on Binance? Deaton Predicts Tough Days Ahead for the CEX

Binance, prominent player in the crypto sphere, is currently navigating a turbulent sea of legal troubles, internal departures, and investigations by the Department of Justice (DOJ). Notably, this turmoil is having a noticeable impact on Binance’s native token, BNB.

What’s really happening and how can this impact the investor? Let’s delve in.

What’s With the Bitcoin Sell-Off?

There’s speculation in the crypto community about whether Binance is resorting to selling Bitcoin from its balance sheet to bolster its struggling token, BNB. The reasoning behind this theory stems from recent developments that have raised eyebrows.

Deaton Raises Questions

The spotlight on Binance’s actions intensified when John Deaton, a key figure in the crypto world, raised concerns about the SEC’s decision to keep crucial documents under wraps, a move that sparked controversy during the Ripple case. Deaton’s queries bring into question the SEC’s handling of sensitive information, adding another layer of complexity to the situation.

Deaton, in an open forum discussion, sounded an alarm by suggesting that Binance might face legal action from the U.S. Department of Justice (DOJ). He pointed to a series of unusual occurrences in the cryptocurrency landscape, hinting that an undisclosed indictment against Binance wouldn’t come as a shock.

Read More: John Deaton Suggests Binance May Object to the SEC’s Sealed Documents!

Hawkish Approach is Hurting Crypto

Deaton further highlighted how there is a noticeable shift in the way regulators and lawmakers are approaching the cryptocurrency industry. He suggested that market participants in the crypto space should prepare for an extended legal battle.

“Unfortunately, I think we have to be prepared for a longer fight. We are witnessing them going from ‘We are going to kill crypto’ to ‘No, well, we can’t, so we are going to crush it so that the traditional players can come in and swoop it up,” Deaton stated.

Deaton believes that the crypto industry’s policy issues will likely continue to play out in court until 2025, after which a political consensus might emerge in the United States. If Binance chooses to confront these challenges head-on, it won’t be easy.

SEC vs. XRP: An Old Rivalry

Attorney Jeremy Hogan, who also participated in the Twitter session, mentioned that the SEC had stated in a filing that it would not appeal the XRP Summary Judgment. The SEC’s statement indicated that the question of whether XRP is, in and of itself, a security was no longer under consideration.

Hogan stresses that it’s time to be innovative, as the increasing trend of people leaving the U.S. isn’t a positive sign. The crypto industry is burdened by regulations, and individuals are seeking an environment where their ideas and innovations can thrive with minimal legal constraints.

Read More: XRP Lawsuit News: We’re Prepared for Full-Blown Fight With the SEC- Says Ripple President

Binance Takes a Nosedive

Amidst these legal entanglements, Binance.US has seen a significant drop in its global market share, plummeting from 2.39% to 0.6%. Furthermore, its current trading volume is lower than what it recorded in early 2020, indicating that turbulent times lie ahead for this crypto giant.