Oregon Becomes the Sixth US State to Revoke Binance.US License to Operate

Jimmy Aki
Last Updated:

Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.

The Oregon Division of Financial Regulation announced on April 30 that it had revoked the Binance.US license, as the exchange is no longer permitted to accept money for transmission, hold funds, or facilitate the sale of fiat or cryptocurrency for consumers in the state.

Binance.US License Decline Spans from CZ Felonies

According to Oregon’s financial division news release, the state’s money transmission license of BAM Trading Services, Inc., which represents Binance.US has revoked due to the entity’s founder and ex-CEO Changpeng Zhao (CZ) guilty plea to a violation of the US anti-money laundering and sanction law.

This development makes Oregon the sixth state in the US to move against the non-renewal of Binance.US license to operate.

The regulatory body explained,

“Following Zhao’s felony pleas, Alaska, Florida, Maine, and North Carolina have also revoked, or denied the renewal of, Binance.US’s money transmission licenses in those jurisdictions.”

It could be recalled that the Florida Office of Financial Regulation issued an emergency suspension order against Binance.US’s money transmitter license on November 29, 2023. This action occurred eight days after CZ’s guilty pleas on November 21.

Subsequently, the state of Alaska became the next in line. The Alaska Division of Banking and Securities denied the renewal of Binance.US’s license on January 8, 2024, due to 100% ownership of the US subsidiary.

Additionally, North Carolina halted its Binance.US license on January 23, followed by Maine declining to renew its license on January 29.

Meanwhile, a local media outlet, Hartfordbusiness, reported that the state of Connecticut had also suspended the Binance.US license on April 24.

Binance.US users have been advised in Oregon to consult tax professionals for guidance on facing liquidation or transfers.

Binance.US License Decline & Legal Troubles Continue

According to a deposition from December 2023, shared in a court filing on March 5, 2024, in the US Securities and Exchange Commission (SEC) case against Binance’s US subsidiary, Chief Operating Officer Christopher Blodgett revealed that the exchange had suffered a severe setback.

Following the SEC’s actions, Binance.US experienced an immediate outflow of around $1 billion in assets, leading to the termination of over 200 employees, representing over two-thirds of the company, as its revenue plummeted by over 75 percent.

Blodgett also expressed that the exchange had become “radioactive” to banks.

“Who can blame them? Because the second it becomes known that they’re working with Binance.US, they can reasonably expect a nasty subpoena from the SEC,” he added.

It should be noted that the SEC filed a lawsuit against Binance on June 5, 2023, which alleged that Binance.US had not registered as an exchange, broker, or clearing agency. Additionally, it claimed that Binance.US had insufficient controls over manipulative trading, participated in wash trading, and mingled funds with Binance.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.