Binance.US CEO Brian Shroder Steps Down Amid Job Cuts
Binance.US Chief Executive Officer Brian Shroder has left the company, leading to an interim replacement by Chief Legal Officer Norman Reed. This development coincides with another round of job cuts at the struggling crypto platform.
Job Cuts and Regulatory Challenges
- Binance.US is eliminating about one third of its workforce, more than 100 positions, due to a regulatory crackdown and eroding business.
- The Miami-based firm has faced mounting legal and operational challenges, resulting in a second round of job cuts this year.
- In June, the US Securities and Exchange Commission (SEC) accused Binance Holdings, Zhao, and Binance.US of mishandling customer funds, misleading investors and regulators, and breaking securities rules. The allegations have been denied by Zhao and the companies.
- In March, the US Commodity Futures Trading Commission charged Binance and Zhao with “willful evasion of federal law.” The Justice Department is also investigating Binance, but no accusations have been made against the company.
Impact on Binance.US
- Following the SEC action, Binance.US customers were unable to deposit or withdraw dollars due to banking partners cutting ties with the platform.
- Binance.US’s share of the global market has decreased to about 0.6% from 2.39% in April.
- Monthly trading volume has fallen below early 2020 levels.
Statement from Binance.US
“The actions we are taking today provide Binance.US with more than seven years of financial runway and enable us to continue to serve our customers while we operate as a crypto-only exchange,” said a spokesperson. “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.”
- Binance.US laid off an unspecified number of workers after the SEC action.
- Binance Holdings has also been losing executives and employees in recent months.
- In August, Binance lost its Asia-Pacific’s head, and in July, several executives, including its chief strategy officer, left the company.
About Brian Shroder
Brian Shroder joined Binance.US two years ago as Chief Executive Officer. Previously, he held positions such as head of business development, global partnerships, at Ant Group and head of strategy and business development in the Asia Pacific for Uber. Shroder joined Binance after the departure of the prior CEO, Brian Brooks, who left the position after four months.
(Updates with background on Brian Shroder from the penultimate paragraph.)
Binance.US is facing significant challenges, including regulatory scrutiny and job cuts. The departure of CEO Brian Shroder and the appointment of an interim replacement highlight the ongoing struggles of the crypto platform. With the SEC’s allegations and the loss of banking partners, Binance.US is working to adapt and continue serving its customers as a crypto-only exchange.
1. Bloomberg – Binance.US CEO Brian Shroder Steps Down Amid Job Cuts
2. Bloomberg Businessweek – Most Read from Bloomberg Businessweek