Brian
Shroder, the CEO of Binance.US (the American arm of the cryptocurrency exchange Binance), has left his position and has been temporarily replaced by Norman
Reed, the Chief Legal Officer, as per a company spokesperson. This leadership
change comes amid significant challenges for Binance.US, which is formally
known as Bam Trading Services.
Binance.US
has decided to reduce its workforce by approximately one-third amounting to over
100 job cuts. These layoffs are anticipated as part of the company’s response to
growing regulatory pressures that have been affecting its business operations.
Earlier
in the year, Binance.US faced legal troubles when the U.S. Securities and
Exchange Commission (SEC) filed allegations against Binance Holdings, Changpeng Zhao (its
Co-Founder also known as CZ), and Binance.US. The SEC accused
them of mishandling customer funds, misleading investors and regulators, and
violating securities regulations. However, Zhao and the companies denied these
allegations.
In
addition to the SEC’s legal action, the U.S. Commodity
Futures Trading Commission (CFTC) charged Binance and CZ with ‘willful evasion of federal law’ in
March. The U.S. Department of Justice has initiated a probe into Binance. No
criminal accusations have been made against the company as of now.
Following
the lawsuits by the US regulators, the American arm of Binance dropped support
for fiat and became a crypto-only exchange . It onboarded MoonPay as a payments
partner to enable USD on-ramp services.
The
impact of these regulatory issues is reflected in Binance.US’s market share. It has declined significantly
from approximately 2.39% in April to around 0.6%, according to Jacob
Joseph, an analyst at research firm CCData. The monthly trading volume on the
platform has fallen below levels seen in early 2020.
Resignations and Departures amid
Ongoing Regulatory Pressure
Finance
Magnates reported in the first week of July that
senior executives at Binance are reportedly leaving the cryptocurrency exchange
amid ongoing regulatory challenges. Some employees are planning to resign,
while others have already departed. Patrick Hillmann, the Chief Strategy Officer
since 2021, confirmed his departure, emphasizing an amicable parting. Other
senior executives said to have left include Steven Christie, Senior Vice
President for Compliance, and Hon Ng, the General Counsel. Eleanor Hughes is
reportedly set to become the new General Counsel.
A week
later, Finance Magnates reported that Binance has laid
off over 1,000 employees recently, reducing its global workforce of
8,000. Regulatory pressure and executive departures have led to downsizing,
with customer-service workers primarily affected. The US
SEC has
charged Binance with running unregistered trading platforms and misusing
customer funds, and the exchange is concerned about possible charges from the
US Department of Justice.
Binance.US
is navigating a challenging period marked by regulatory scrutiny and
operational hurdles, leading to leadership changes and staff reductions.
Brian
Shroder, the CEO of Binance.US (the American arm of the cryptocurrency exchange Binance), has left his position and has been temporarily replaced by Norman
Reed, the Chief Legal Officer, as per a company spokesperson. This leadership
change comes amid significant challenges for Binance.US, which is formally
known as Bam Trading Services.
Binance.US
has decided to reduce its workforce by approximately one-third amounting to over
100 job cuts. These layoffs are anticipated as part of the company’s response to
growing regulatory pressures that have been affecting its business operations.
Earlier
in the year, Binance.US faced legal troubles when the U.S. Securities and
Exchange Commission (SEC) filed allegations against Binance Holdings, Changpeng Zhao (its
Co-Founder also known as CZ), and Binance.US. The SEC accused
them of mishandling customer funds, misleading investors and regulators, and
violating securities regulations. However, Zhao and the companies denied these
allegations.
In
addition to the SEC’s legal action, the U.S. Commodity
Futures Trading Commission (CFTC) charged Binance and CZ with ‘willful evasion of federal law’ in
March. The U.S. Department of Justice has initiated a probe into Binance. No
criminal accusations have been made against the company as of now.
Following
the lawsuits by the US regulators, the American arm of Binance dropped support
for fiat and became a crypto-only exchange . It onboarded MoonPay as a payments
partner to enable USD on-ramp services.
The
impact of these regulatory issues is reflected in Binance.US’s market share. It has declined significantly
from approximately 2.39% in April to around 0.6%, according to Jacob
Joseph, an analyst at research firm CCData. The monthly trading volume on the
platform has fallen below levels seen in early 2020.
Resignations and Departures amid
Ongoing Regulatory Pressure
Finance
Magnates reported in the first week of July that
senior executives at Binance are reportedly leaving the cryptocurrency exchange
amid ongoing regulatory challenges. Some employees are planning to resign,
while others have already departed. Patrick Hillmann, the Chief Strategy Officer
since 2021, confirmed his departure, emphasizing an amicable parting. Other
senior executives said to have left include Steven Christie, Senior Vice
President for Compliance, and Hon Ng, the General Counsel. Eleanor Hughes is
reportedly set to become the new General Counsel.
A week
later, Finance Magnates reported that Binance has laid
off over 1,000 employees recently, reducing its global workforce of
8,000. Regulatory pressure and executive departures have led to downsizing,
with customer-service workers primarily affected. The US
SEC has
charged Binance with running unregistered trading platforms and misusing
customer funds, and the exchange is concerned about possible charges from the
US Department of Justice.
Binance.US
is navigating a challenging period marked by regulatory scrutiny and
operational hurdles, leading to leadership changes and staff reductions.
