Binance US CEO Brian Shrode has left his office at the US arm of the world’s largest crypto exchange company, Binance, as the legal dual with the US Securities and Exchange Commission (SEC) is making life difficult for the company.
According to a Bloomberg report citing a Binance US spokesperson on Wednesday, September 13, Brian Shroder, who joined Binance US in September 2021 as president, has parted his way with the company, and Norman Reed, the chief legal officer, will replace him as an interim CEO.
Binance US CEO Brian Shroder is departing the embattled crypto exchange as it cuts more jobs in the face of a regulatory crackdown https://t.co/F7BrJENsuU
— Bloomberg Crypto (@crypto) September 13, 2023
Per the reports, citing an internal communique, this key executive departure comes as the Changpeng Zhao-founded crypto behemoth is reducing about one-third of its workforce, or more than 100 employees, as a regulatory crackdown squeezes its business. It is the second round of layoffs at the company in 2023. It laid off an unspecified number of employees in June.
The List of Key Departures at Binance US is Growing
Since the US SEC lawsuit in June 2023, the US offshoot of the world’s largest cryptocurrency exchange has seen several key executive departures and other operational challenges. Soon after the SEC action, customers of Binance.US were unable to deposit or withdraw funds as multiple baking partners cut ties with the platform.
The SEC also sought to freeze Binance US assets through a temporary restraining order (TRO). The firm, however, came out unscathed from this, as the court rejected the TRO. Nevertheless, the SEC and CFTC legal challenges are pressing hard on the firm’s business.
Reports suggest that the Binance US’ global market share has dropped below 1% from 2.4% in April as the US customers move away from the platform. The overall Binance monthly trading volume has plummeted from $10.5 billion in January to below $100 million in September.
Furthermore, the outgoing Binance US CEO, Brian Shroder, has joined the growing list of key executives departures from the company. As reported in Wealth Growth Insights, Binance was in the headlines in the crypto media as four key executives, including chief strategy officer Patrick Hillman, resigned on a single day in July. Four more executives have left in the last week. The list now counts 11 executives who have parted ways with the exchange since July 2023.
The number of executives leaving Binance amid growing regulatory troubles has been a key talking point in the crypto community. The father of Binance Changpeng Zhao has always tried to wave off the problems at the exchange by calling these departures normal. Last week, he said that Binance had the lowest “founding team turnover of any tech startup of our size and age in the world.”
Saw some debates in the community. When you do the right thing, and there is FUD, you don't have to do anything. The community defends you.
Let me summarize. There have been a lot of negative news/rumors, bank runs, lawsuits, closing of fiat channels, product wind downs,…
— CZ 🔶 Binance (@cz_binance) September 7, 2023
