Aside from the investigation launched by the Department of Justice, the Securities and Exchange Commission (SEC) sued Binance a month ago for listing unregistered securities, mixing up customer deposits, and violating Know Your Customer (KYC) rules.
The recent departure of several senior executives from leading cryptocurrency exchange Binance has sparked reactions among netizens who described the action as a “total disruption”.
However, Changpeng ‘CZ’ Zhao, the chief executive (CEO) of the exchange has debunked the narrative, claiming it is merely an attempt by the media to generate and spread fear, uncertainty and doubt (FUD) in the industry.
4. MORE FUD ABOUT SOME OF THE DEPARTERS. Yes, there is turnover (in every company). But the reasons why “news” is dreaming are completely wrong.
As an organization that has grown from 30 to 8,000 people in 6 years, from 0 to the world’s largest cryptocurrency exchange in less than 5 months…
– Czechoslovakia 🔶 Binance (cz_binance) July 6, 2023
In a Twitter post made earlier today, CZ said:
More FUD about some of the departures. Yes, there is turnover (in every company). But the reasons why you’re dreaming about ‘the news’ are completely wrong.”
Further explaining, he explained that the departure was part of the company’s required employee turnover. In addition, it was mentioned that all three executives did not leave in one week as was expected earlier. It was just an exaggeration, Zhao noted, as only one of those executives left this week.
“As markets and the global cryptocurrency environment change, as our organization evolves, and as personal attitudes change, there is turnover in every company. We thank all of our former team members for their contributions to our growth and wish them all the best. We also congratulate our team members who have evolved in these new roles. All of them are really high caliber,” the Binance CEO tweeted.
A report from Fortune said that General Counsel Hon Ng, Chief Strategy Officer Patrick Hillman, and Senior Vice President of Compliance Stephen Christie have left their positions at the leading exchange. Bloomberg also announced that Binance’s chief business officer, Yibo Ling, has left the company.
News reports indicate that CZ’s handling of the ongoing investigations is the reason behind the abrupt departure of the aforementioned executives. Fortune also described the executives’ decision as “a management and strategic crisis for Binance at a time when it is facing tremendous regulatory pressure.”
A former Binance executive confirmed CZ’s claim
Of note, Hellmann Certain He is leaving Binance but on good terms, adding that his wife is having a baby and therefore it is the right time for him to step down.
Christy too announce That his reason for leaving is very different from what was reported. He cited health and family reasons as the motive behind his departure from Binance.
“I have been committed to cryptocurrency since 2015 when I joined Xapo, and have spent the last 6 consecutive years leading and growing compliance functions at Kraken and Binance without interruption. At this point, I am simply tired,” said Christie.
As it stands, Binance is already facing a lot of pressure from US regulators who are questioning its fairness and offerings. Aside from the investigation launched by the Department of Justice, Binance was sued by the Securities and Exchange Commission (SEC) a month ago for listing unregistered securities, mixing customer deposits, and violating Know Your Customer (KYC) rules.
The US subsidiary of the exchange, Binance.US, has not fared well, losing more than 20% of its market share as of Thursday, July 6. To date, the hypothesized effect of FUD has not yet been published.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-world applications of blockchain technology and innovations to drive public acceptance and global integration of the emerging technology. His desires to educate people about cryptocurrencies have inspired his contributions to popular blockchain-based media and websites. Benjamin Godfrey is a fan of sports and farming.
