Kevin O’Leary Casts Doubt on Binance’s Future Amidst Regulatory Challenges

Kevin O’Leary, Chairman of O’Leary Ventures and a prominent investor from “Shark Tank,” expressed doubt about the longevity of cryptocurrency exchange Binance during the recent Benzinga Fintech Deal Day & Awards. O’Leary’s skepticism, shared on Monday, implied a pessimistic outlook, stating that “Binance will be history soon.”

This statement coincided with Binance’s recent decision to halt local currency deposits in Russia starting November 15, a move detailed in the company’s official blog. Binance did not immediately respond to Benzinga’s request for comment.

In June, the U.S. Securities and Exchange Commission (SEC) filed charges against Binance, accusing the exchange of operating unregistered exchanges, broker-dealers, and clearing agencies. SEC Chair Gary Gensler alleged a range of deceptive practices by Binance and its CEO, Changpeng Zhao, emphasizing “an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law” through thirteen charges. The SEC’s concerns included manipulative trading practices and the misrepresentation of trading controls.

A Wired report in June highlighted Binance’s operational peculiarities, noting its absence of a fixed headquarters or formal address despite handling daily cryptocurrency transactions valued at $12 billion. The SEC additionally accused Binance and Zhao of enabling the transfer of customer assets to Sigma Chain, another business owned by Zhao. The regulatory body contends that Sigma Chain engages in manipulative trading to artificially inflate Binance’s trading volume.