Binance.US CEO Quits as Crypto Company Cuts a Third of its Workforce – The CEO of Binance’s U.S. subsidiary has left the cryptocurrency trading platform as part of a recent wave of workforce reductions. Binance.US has officially announced the departure of CEO Brian Shroder, according to a statement provided to The Associated Press on Wednesday.
While the cryptocurrency exchange did not provide specific details regarding the timing or reasons behind Shroder’s departure, they did reveal that Norman Reed, the chief legal officer, has assumed the role of interim CEO. Shroder initially joined Binance.US as its president in September 2021, subsequently being appointed CEO in the subsequent month.
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Schroder’s exit aligns with the reduction of Binance.US’s staff by approximately one-third, resulting in the termination of over 100 employees. “The actions we are taking 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,” the spokesperson said in a statement.
Binance.US also highlighted actions taken by the U.S. Securities and Exchange Commission earlier this year, asserting that the agency’s aggressive efforts to undermine our industry and the subsequent impacts on our business have tangible repercussions and this unfortunate incident serves as an illustration of that.”
Binance, the world’s largest cryptocurrency exchange, along with its founder Changpeng Zhao, has been embroiled in extensive legal proceedings with U.S. regulatory authorities throughout this year. In March, the Commodity Futures Trading Commission filed a lawsuit against the company, alleging numerous violations related to their exchange operations.
Additionally, in June, the SEC accused Binance and its owner of misappropriating investor funds, operating as an unregistered exchange, and violating various federal securities laws. In a statement at the time, SEC Chair Gary Gensler said that Zhao and Binance “engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law.”
Adding that “the public should beware of investing any of their hard-earned assets with or on these unlawful platforms.” The SEC also initiated a lawsuit against BAM Trading Services, the operator of Binance.US. Subsequently, a court agreement was reached weeks later, enabling the cryptocurrency exchange to persist in its U.S. operations while contesting the SEC’s allegations.
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This round of workforce reductions occurring this week isn’t the initial instance of layoffs at Binance.US this year. An unspecified number of job cuts were reported within the company following the SEC’s lawsuit in June, as reported by Reuters. Binance.US asserts its independent operation from Binance, even though Changpeng Zhao is the majority owner of both entities.