September 13 - Binance's U.S. subsidiary, a prominent player in the cryptocurrency industry, has announced the departure of its Chief Executive Officer, Brian Shroder. Additionally, the company has initiated workforce reductions exceeding 100 positions, constituting approximately one-third of its total employees. These moves underscore the operational hurdles confronting the organization following legal actions taken by regulatory authorities.
Norman Reed, serving as the company's General Counsel since his arrival in December 2021, will assume the role of interim CEO.
A spokesperson for Binance.US commented, "The strategic measures being implemented today provide Binance.US with a financial runway extending beyond seven years, facilitating uninterrupted services to our clientele as we continue to operate solely as a cryptocurrency exchange."
Binance.US has refrained from disclosing the specific reasons for Mr. Shroder's departure.
The U.S. Securities and Exchange Commission (SEC) lodged a civil complaint in June against Binance, the world's largest cryptocurrency exchange, and its founder, Changpeng Zhao. The SEC's allegations assert that Binance orchestrated the creation of Binance.US as a component of a broader scheme designed to circumvent securities regulations established to safeguard U.S. investors.
Both Binance and Binance.US have consistently affirmed their independent operational statuses.
Furthermore, Binance has observed a series of executive departures in recent times. Mayur Kamat, the Global Head of Product, tendered his resignation earlier this month, while Patrick Hillmann, the Chief Strategy Officer, parted ways with the company in July.