In the midst of yet another round of firings at the beleaguered cryptocurrency exchange, two more managers of Binance US are apparently leaving. The departures occur as Binance's U.S. digital asset trading platform continues to face more regulatory scrutiny, which has hurt its bottom line.
Legal and Risk Executives from Binance US Resign as the Crypto Trading Firm Cuts More Jobs
Following this week's reports of the departure of the platform's CEO, the Wall Street Journal has now disclosed that risk and legal executives are leaving Binance US, the American division of the largest cryptocurrency exchange.
The company's Chief Risk Officer Sidney Majalya and Head of Legal Krishna Juvvadi are leaving their positions, the newspaper said on Thursday, citing people aware of the management changes at the trading platform.
According to a Tuesday Bloomberg article, Brian Shroder, the CEO of Binance US, has also left the company and will be temporarily replaced. The CEO exodus happens at the same time as another round of layoffs that reduced the company's staff by one-third.
The largest digital asset exchange in the US and internationally is currently facing significant legal and commercial issues. In June, Binance, its founder Changpeng Zhao (CZ), and its American division were sued by the U.S. Securities and Exchange Commission for violating securities laws.
The SEC charged them with operating an illegal trading platform in the US while misrepresenting investors and regulators and diverting consumer monies. One of the Binance US officials in charge of liaising with the securities regulation was Juvvadi.
The U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and CZ in March for contravening trading and derivatives laws. Additionally, according to media sources, the Justice Department is looking into whether the crypto behemoth violated Russian sanctions.
Sidney Majalya and Krishna Juvvadi are two more executives that have left Binance this year. Chief Strategy Officer Patrick Hillmann of the exchange, Senior Vice President for Compliance Steven Christie, General Counsel Hon Ng of Binance, Leon Foong, who was in charge of the Asia-Pacific region, and Product Lead Mayur Kamat are among them.
Following their departures, Gleb Kostarev and Vladimir Smerkis, Binance's managers for Eastern Europe and Russia, announced their resignations earlier in September. Changpeng Zhao, the CEO of Binance, has previously attempted to minimize the significance of the executive departures, and this summer, news sources said that the exchange had let go of 1,000 staff members.
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