The Florida Office of Financial Regulation has issued an emergency suspension of Binance.US’ money transfer license, making it impossible to offer customer service in the state. Similar action has been taken by Alaska authorities.
In June, financial regulators began investigating Binance and its subsidiary Binance.US for suspected illegal securities trading. US authorities alleged that the cryptocurrency exchange commingled billions of dollars in customer deposits with its own assets, without adequate separation.
Last year, Binance founder Changpeng Zhao pleaded guilty to violating US anti-money laundering regulations. The company agreed to pay a fine of $4.3 billion, and Zhao stepped down as the head of the company.
Alaska and Florida regulators argue that Zhao’s guilty plea makes it illegal for Binance.US to operate, as he holds 80% of the company’s shares.
Zhao is currently in the US awaiting trial, and his recent request to temporarily travel to the United Arab Emirates was denied by a court.
Nevertheless, confidence in Binance is gradually being restored among crypto investors. According to DefiLlama, the largest trading platform has seen a net inflow of $4.6 billion since reaching an agreement with US authorities.