Chief Executive Officer of Binance US, Brian Shroder, has left the company amid an ongoing regulatory crackdown and more job cuts. Shroder's departure comes two years after he joined the American subsidiary of the world's largest cryptocurrency exchange by daily trading volume.
Shroder Departs Binance US as Unit Eliminates Over 100 Positions
The CEO of Binance US, Brian Shroder, has quit his job and has been replaced on the post by an interim appointment, the exchange's Chief Legal Officer, Norman Reed, Bloomberg revealed in a report quoting a company spokesperson.
Shroder is leaving while the Miami-based entity is reducing its workforce by a third, or more than 100 employees, amid persisting pressure from regulators that has hurt its business. Its monthly trading volume has fallen below early 2020 levels.
Binance US's market share dropped to 1.5% in June, according to digital assets market data provider Kaiko, and currently stands at around 0.6%, down from 2.39% in April of this year, said Jacob Joseph, an analyst at researcher Ccdata.
This is the second round of job cuts this year at Binance's crypto trading platform for U.S. users which launched in 2019 and is operated by BAM Trading Services. "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 spokesperson said in a statement, adding:
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.
The company representative was referring to Binance's legal and operational challenges in the United States. In June, the U.S. Securities and Exchange Commission (SEC) took legal action against Binance, its founder Changpeng Zhao (CZ), and its U.S. subsidiary for mishandling customer funds, misleading investors and regulators, and breaking securities regulations.
In March, the U.S. Commodity Futures Trading Commission (CFTC) sued Binance and Zhao for "willful evasion of federal law" while the Department of Justice is investigating the exchange for Russia sanctions evasion. Binance and CZ have denied these allegations and accused U.S. authorities of employing "regulation by enforcement" tactics.
A number of executives have left in the past few months, including Chief Strategy Officer Patrick Hillmann, Senior Vice President for Compliance Steven Christie, Binance's General Counsel Hon Ng, Leon Foong, who ran the crypto behemoth's Asia-Pacific business, and Product Lead Mayur Kamat. The latest to quit were Binance's managers for Eastern Europe and Russia. The exchange reportedly laid off over 1,000 employees earlier this year.
What future do you see for Binance US and what are your thoughts on its CEO's departure? Tell us in the comments section below.
Source: Bitcoin.com
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