Binance.US, a prominent cryptocurrency exchange, recently witnessed the resignation of its CEO, Brian Shroder.
This significant leadership change coincided with the company's decision to reduce its staff by over 100 members.
These actions come on the heels of an earlier round of layoffs in June and the company's strategic pivot to operate exclusively as a cryptocurrency exchange. The company cites increased regulatory oversight from the U.S. Securities and Exchange Commission (SEC) as a primary challenge.
The company voiced its apprehensions regarding the SEC's regulatory stance, stating,
“The SEC’s aggressive attempts to cripple our industry and the resulting impacts on our business have real-world consequences for American jobs and innovation, and this is an unfortunate example of that.”
Despite these challenges, Binance.US reaffirms its dedication to its clientele and highlights its seven-year operational track record.
This situation is set against a backdrop where Binance, the global leader in cryptocurrency exchanges, grapples with regulatory obstacles in the U.S.
Earlier in the year, the SEC initiated legal proceedings against Binance, accusing it of breaching securities regulations. Additionally, Binance and its founder, Changpeng Zhao, faced charges from the U.S. Commodity Futures Trading Commission for allegedly evading federal regulations.
Binance.US's financial performance has also been affected, with revenues dropping from $10.6 billion at the start of the year to a mere $70 million in the current month.
Also, there's been a notable departure of senior executives from Binance on a global scale. Internal disagreements regarding Zhao's approach to the U.S. Department of Justice's inquiry into the exchange are believed to be a factor in these exits.
Addressing rumors about staff exits and potential market withdrawals, Zhao labeled them as baseless concerns or "FUD."
Binance also aimed to differentiate itself from the now-defunct FTX crypto exchange, emphasizing its robust financial health and liquidity.
Norman Reed, previously the Chief Legal Officer at Binance.US, will assume the CEO position in the wake of Shroder's exit. Established in 2019, Binance.US was designed to cater to the American market, which initially couldn't avail services from Binance Holdings.
As Binance Holdings expanded its global footprint, its U.S. subsidiary faced regulatory headwinds, culminating in accusations from the SEC regarding regulatory breaches and other alleged malpractices.