Next week, Binance US will stop selling Justin Sun’s Tron Token

TRON and Spell both had significant price drops on Wednesday when the U.S. division of cryptocurrency exchange Binance said it will be removing the tokens from exchange. The U.S. Securities and Exchange Commission filed a lawsuit against Tron and its CEO Justin Sun a few weeks ago, alleging that Sun sold and airdropped unregistered securities, committed fraud, and manipulated the price of the TRX coin. The token sale on Binance US will be affected, but not Binance.com internationally.

On April 17, 2023, the day before delisting, Binance US will stop accepting SPELL and TRX deposits but will continue to allow withdrawals. While Binance US will no longer offer TRX, it will continue to accept TRC20 USDT and USDC tokens produced on the Tron network. TRX dropped 2.8% against the dollar after the delisting announcement, while SPELL dropped more over 4%.

The U.S. regulator SEC is suing Sun on grounds that TRX is an unregistered security and that Sun manipulated the market. A recent report also suggested that industry insiders have said that Binance US has been searching for a new banking partner.

We operate in a rapidly evolving industry and our digital asset monitoring process is designed to be responsive to market and regulatory developments. When a digital asset no longer meets our high standards, or industry circumstances change, we conduct a more in-depth review of the affected asset and assess whether further action is necessary (i.e. delisting).

Binance US said in a statement

Binance US said that the decision was made after reviewing trading volume and liquidity, changes in a token’s risk profile, and evidence of fraud or unethical behaviour, among other factors, on a quarterly basis.