Binance.US CEO departs as crypto platform cuts a third of staff
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It comes as a regulatory crackdown erodes Binance's US business.
PHOTO: REUTERS
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PORTLAND, Oregon – Binance.US chief executive Brian Shroder has left the crypto trading platform and been replaced on an interim basis by chief legal officer Norman Reed, according to a company spokesman.
The departure comes as the firm controlled by embattled digital entrepreneur Zhao Changpeng is eliminating about one third of its workforce, or more than 100 positions, as a regulatory crackdown
It is the second round of job cuts in 2023 at the Miami-based firm, as it faces a series of mounting legal and operational challenges.
In June, the US Securities and Exchange Commission (SEC) accused Binance Holdings, Mr Zhao and Binance.US of mishandling customer funds, misleading investors and regulators, and breaking securities rules.
Mr Zhao and the companies have denied the allegations.
The exchange, which is formally called BAM Trading Services, was started in 2019 for United States users, who are prohibited from using Binance Holdings.
In March, the US Commodity Futures Trading Commission charged Binance Holdings and Mr Zhao with “willful evasion of federal law”. The Justice Department is probing the firm, which it has not accused of any wrongdoing, as well.
Soon after the SEC action, customers of Binance.US became unable to deposit or withdraw dollars,
Binance.US’ share of the global market has shrunken to about 0.6 per cent from 2.39 per cent in April, according to Mr Jacob Joseph, an analyst at researcher CCData. Monthly trading volume has fallen below early 2020 levels, he added.
Said the firm in a statement: “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,” a spokesman said in a statement.
“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, Bloomberg reported in June.
Binance Holdings has been shedding executives and other employees in recent months as well. In September, two executives overseeing regions including Eastern Europe and Russia left. In August, the firm lost its Asia-Pacific head and in July, a slew of executives including its chief strategy officer.
Mr Shroder joined Binance.US two years ago soon after the departure of prior CEO, Mr Brian Brooks, who left the position after just four months. BLOOMBERG
