Brian Shroder, the chief executive officer of Binance US, has departed the organization as a result of continuous regulatory scrutiny and additional staff reductions. Two years after joining the American division of the largest cryptocurrency exchange in the world based on daily trading volume, Shroder has left the company.
Shroder leaves Binance US as the company cuts more than 100 positions
According to a report by Bloomberg citing a business representative, the CEO of Binance US, Brian Shroder, has resigned and been replaced in his position by the exchange's chief legal officer, Norman Reed, for a temporary period of time.
In the midst of ongoing pressure from authorities that has harmed its company, the Miami-based organization is reducing its employment by a third, or more than 100 employees, as Shroder departs. Its monthly trading volume is now below what it was in the beginning of 2020.
According to digital asset market data source Kaiko, Binance US's market share decreased to 1.5% in June. It now stands at roughly 0.6%, down from 2.39% in April of this year, according to analyst Jacob Joseph of research firm Ccdata.
At Binance's cryptocurrency trading platform for American users, which was introduced in 2019 and is run by BAM Trading Services, there have been two rounds of employment losses this year. A representative for Binance US stated in a statement: "The steps we are taking today give Binance US more than seven years of financial runway and enable us to continue serving our customers while we operate as a crypto-only exchange."
This is a regrettable illustration of how the SEC's aggressive tactics to paralyze our industry and the effects on our business have real-world effects on American jobs and innovation.
The firm spokesperson was alluding to Binance's difficulties with the law and business operations in the US. The U.S. Securities and Exchange Commission (SEC) filed a lawsuit in June against Binance, its creator Changpeng Zhao (CZ), and its U.S. subsidiary for handling customer funds improperly, deceiving investors and authorities, and violating securities laws.
While the Department of Justice is looking into the exchange for evading Russia sanctions, the U.S. Commodity Futures Trading Commission (CFTC) sued Binance and Zhao in March for "willful evasion of federal law". These claims have been refuted by Binance and CZ, who also charged that "regulation by enforcement" strategies were being deployed by American authorities.
In the most recent few months, a number of officials have left Binance, including Chief Strategy Officer Patrick Hillmann, Senior Vice President for Compliance Steven Christie, General Counsel Hon Ng, Leon Foong, who oversaw the Asia-Pacific division of the crypto juggernaut, and Product Lead Mayur Kamat. The managers for Binance in Eastern Europe and Russia were the most recent to go. Over 1,000 staff were reportedly let go by the exchange earlier this year.
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