Binance US, the US branch of the Binance cryptocurrency exchange, has taken significant restructuring measures that include workforce reductions of approximately one-third. Additionally, Binance US President and CEO Brian Shroder also resigned from his position. Here are the details…
Binance US CEO resigned
Brian Shroder joined Binance US in September 2021, and his departure coincides with a wave of regulatory actions taken against the exchange in recent months. As an interim measure, Norman Reed, Chief Legal Officer of Binance US, has assumed the role vacated by Brian Shroder. A spokesperson representing BinanceUS officially confirmed these layoffs and the departure of Brian Shroder, saying that the actions were taken to strengthen the financial resilience of the exchange and provide a significant financial buffer as it transitions to a crypto-only exchange.
A spokesperson for the cryptocurrency exchange highlighted the impact of strong regulatory action by the U.S. Securities and Exchange Commission (SEC) on the cryptocurrency industry, suggesting that the regulator’s actions have tangible repercussions on American jobs and innovation. Earlier this year, both the SEC and the Commodity Futures Trading Commission (CFTC) filed legal action against Binance, Binance US, and exchange co-founder Changpeng “CZ” Zhao for operating an illegal exchange, selling unregistered securities, violating commodity regulations, and mismanaging customer funds. started it.
The exchange experienced regulatory difficulties
In response to regulatory challenges, on June 9 Binance suspended US dollar deposits and announced that fiat withdrawal channels were temporarily halted during its ongoing battle with the SEC. The exchange then operated as a crypto-only platform for two months and reintroduced dollar trading capabilities in August following a partnership with MoonPay. According to a July report by Reuters based on data from Kaiko, Binance US has experienced a significant decline in its market share in the US cryptocurrency market. Its market share fell from over 22% in April to approximately 0.9% as of June 26, underscoring the challenges and changing landscape facing the stock market in the US.
SEC reacted
Meanwhile, as we reported as Kriptokoin.com, Binance US is in its legal process with the SEC. The exchange pointed out that there was no evidence of the accusations made against them by the SEC. He also stated that the SEC’s request to take a statement was unreasonable and burdensome. The exchange pointed out that although it went through an expedited discovery process for four months, there was no evidence of misuse of customer assets. Binance said that since the hearing on June 13, they have demonstrated that all customer assets have been verified.
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