Binance.US lost $181 million in 2022, according to documents.
Binance’s US division, Binance.US, had a significant loss of $181 million in 2022, as revealed by a new filing with the Securities and Exchange Commission (SEC).
Despite receiving $132 million in funding from its parent company BAM Management last year, Binance.US experienced challenging market conditions in crypto, which led to the loss, according to FGMK, an auditor hired by Binance.US.
The Wall Street Journal was the first to report the news on Wednesday.
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Based on the filed documents, Binance.US also recorded around $150 million in revenue for 2021, driven by surging crypto prices and increased enthusiasm among crypto investors.
However, during its first year of operation in 2020, Binance.US lost almost $400,000.
Notably, the SEC filings revealed a flow of funds between Binance.US and various other entities controlled by Binance CEO Changpeng Zhao (CZ), including a transfer of $21.6 billion to Paxos Trust Company, the issuer of Binance’s stablecoin, Binance USD (BUSD).
The filing was made in connection with a lawsuit filed by the SEC against Binance on Monday of this week, in which the regulator accused Binance and its CEO CZ of showing “blatant disregard” for its rules.
The SEC documents also shed light on other parts of CZ’s crypto empire, including numerous foreign entities linked to him, and accounts held at the now-defunct Signature Bank.
These entities were established in countries such as Canada, the United Arab Emirates (UAE), the Seychelles, Singapore, Lithuania, and Kazakhstan, with only some bearing the word “Binance” as part of their name.
Part of broader crypto crackdown
The SEC’s lawsuit against Binance is widely regarded as part of a broader crackdown on crypto in the United States.
Rival exchange blockchain has also been targeted by the SEC, with the regulator naming several tokens listed on the platform as “securities.”
It is illegal to sell and promote unregistered securities in the United States, and the SEC has argued that exchanges that facilitate trading in these tokens are breaking the law by not registering as securities exchanges with the regulator.
