Binance US CEO resigns and a third of the staff is laid off

Binance US CEO resigns and a third of the staff is laid off
September 13, 2023 – 2:24 p.m.

Norman Reed, who joined the company in December 2021 as general counsel, will temporarily assume the CEO position, replacing Shroder.

The American subsidiary of the main cryptocurrency exchange of the world, Binance.USannounced significant changes to its leadership and structure organizational. Brian Shroderwho held the position of CEO, left his position; The news is accompanied by a cut of more than 100 employeesapproximately a third of the total workforce. This personnel adjustment marks the second wave of layoffs so far this year.

Norman Reedwho joined the company in December 2021 as general counsel, will temporarily assume the position of CEO replacing Shroder.

In a statement, the company said: “The actions we are taking at this time will provide Binance.US a solid financial foundation with more than seven years of experiencewhich will allow us to continue serving our clients as an exchange dedicated exclusively to cryptocurrencies“However, no details were provided about the reasons for the departure of Shroder.

Notably the company attributed these changes and layoffs Securities and Exchange Commission (SEC, for its acronym in English) and its “aggressive attempts to hinder our industry“. Binance.US considers that the repercussions of these regulatory actions have a real impact on jobs and innovation in the United Statesciting this case as a regrettable example.

Binance vs. the SEC

Recall that the SEC filed a lawsuit against Binance and its founder and CEO, Changpeng Zhao, last June, alleging alleged violations of US securities laws. The Commission accused the company and its subsidiary of “knowingly evading laws and endangering investors.” In March, the Commodity Futures Trading Commission (CFTC) also filed a lawsuit against the company.

After receiving the request, Binance reached an agreement with the SEC to avoid freezing its assets and continue operating. The company claimed that the SEC did not provide evidence of misuse of client assets and noted that SEC attorneys acknowledged the lack of evidence to support these allegations.

The The company’s lack of transparency has been the subject of criticism in recent years. Media reports suggest that the US subsidiary was not truly independent from the parent and that Binance may have devised strategies to evade oversight by US regulators.

Additionally, there have been reports of interest from Changpeng Zhao in reducing its stake in Binance.US to relieve pressure from regulators on the subsidiary.

Source: Ambito

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