Binance.US CEO Departs as Crypto Exchange Cuts Workforce by a Third
Binance.US, the U.S. arm of the world’s largest crypto exchange, has recently experienced significant setbacks as regulators crack down on the industry. The company has announced that its CEO, Brian Shroder, is no longer with the company, and more than 100 employees have been laid off.
Regulatory Actions Blamed for Layoffs
The Securities and Exchange Commission (SEC) took actions earlier this year that have had a direct impact on Binance.US. The company attributes the layoffs to these regulatory actions.
Interim CEO Appointed
Following Brian Shroder’s departure, Binance.US has appointed Norman Reed, the company’s general counsel, as the interim CEO. Reed joined the company in December 2021.
SEC Lawsuit Against Binance
The SEC filed a civil complaint against Binance and its founder, Changpeng Zhao, in June. The complaint alleges that Binance.US was created as part of a “web of deception” to evade securities laws meant to protect U.S. investors.
Separation Between Binance and Binance.US
Binance and Binance.US maintain that they operate as separate entities. However, the SEC’s lawsuit suggests otherwise.
Executive Exits at Binance
In addition to the departure of the CEO, Binance has seen other executive exits. Mayur Kamat, the global head of product, resigned recently, and Patrick Hillmann, the chief strategy officer, left in July.
Increased Scrutiny on Crypto Industry
The collapse of FTX, a former chief rival of Binance, has led to greater scrutiny on the crypto industry as a whole. Regulators are now closely monitoring crypto exchanges and their operations.
The regulatory actions taken by the SEC have had significant consequences for Binance.US, resulting in layoffs and the departure of the CEO. The future of the crypto industry remains uncertain as regulators continue to tighten their grip.
Source: FOX Business