According to Bloomberg,Binance.US CEO Brian Shroder has departed from the cryptocurrency trading platform amid ongoing challenges, with Chief Legal Officer Norman Reed taking over on an interim basis. This change coincides with Binance.US eliminating over 100 positions, roughly one-third of its workforce, due to regulatory pressures impacting its business. The exchange, established in 2019 for US users, is distinct from Binance Holdings and has faced legal scrutiny.
In June, the US Securities and Exchange Commission (SEC) accused Binance Holdings, Changpeng “CZ” Zhao, and Binance.US of mishandling customer funds, misleading regulators and investors, and violating securities rules. These allegations have been denied by Zhao and the companies. The US Commodity Futures Trading Commission also charged Binance and Zhao with “willful evasion of federal law” in March. The Justice Department is conducting an investigation into Binance, although no formal charges have been filed.
Following the SEC’s actions, Binance.US customers encountered difficulties depositing or withdrawing dollars as several banking partners severed ties with the platform. As a result, the company implemented an alternative method for users to convert dollars into cryptocurrency. Binance.US’s global market share has dwindled to approximately 0.6%, down from approximately 2.39% in April. Monthly trading volume has also dropped below levels seen in early 2020.
In response to these challenges, a Binance.US spokesperson stated that the actions taken aim to provide the platform with over seven years of financial stability, allowing it to operate solely as a cryptocurrency exchange. The spokesperson also criticized the SEC’s efforts, describing them as detrimental to American jobs and innovation.
Binance.US had previously laid off an undisclosed number of employees following the SEC’s actions in June. Binance Holdings has also seen a series of departures among its executives and staff in recent months, reflecting the broader challenges faced by the cryptocurrency industry and regulatory scrutiny.