Binance .US, the US branch of the global crypto platform, is facing major challenges, with 100 job cuts and the departure of its CEO, Brian Shroder. The Securities and Exchange Commission (SEC) has targeted the crypto exchange with aggressive regulatory actions, leading to layoffs.
As reported by Bloomberg, Brian Shroder, CEO of Binance.US, has resigned from his position. In addition to this major leadership change, the exchange has recently eliminated around a third of its workforce, equivalent to a staggering 100 jobs.
Binance has recently faced staff layoffs and notable senior executive departures this year. On September 6, the exchange parted ways with several executives in charge of its Russian operations.
In July, Binance drew attention when its chief strategy officer, Patrick Hillman, announced his departure, along with Steven Christie, a compliance officer who had joined the company in May 2022.
Why Are Binance Senior Executives Resigning?
Earlier this year, both the SEC and the Commodity Futures Trading Commission took legal action against Binance, Binance.US, and the exchange’s co-founder Changpeng “CZ” Zhao, which involved a variety of accusations, including the operation of an illegal platform. trading, the sale of unregistered securities, violations of commodity laws and mismanagement of client funds.
Binance.us acknowledged the impact of the SEC’s actions on its business and the crypto industry at large:
“The SEC’s aggressive attempts to criminalize our industry and the resulting impacts on our business have global consequences real for American jobs and innovation. and this is an unfortunate example of it.”
The exchange has issued a statement to highlight its financial strength, according to which the measures taken guarantee that Binance is financially stable to operate flawlessly for more than seven years.
Impact on Customers and the Global Crypto Market
Binance.US has seen a huge drop in its business. Customers can no longer use US dollars to purchase cryptocurrencies on the platform. Monthly trading volumes have dropped from $10.58 billion in January to just $70 million this month.
According to Kaiko Data, in April, Binance.US had a large share of the cryptocurrency market in the United States, around 22%. At the end of June, though, it dropped sharply to only around 0.9%.
The Crypto Community Reacts
Prominent voices within the cryptocurrency community have offered their thoughts on this development.
Clemente, a well-known crypto analyst, noted that Binance.US has seen a significant reduction in daily trading volume, making it less attractive to Binance’s global operations, especially considering the regulatory and legal risks involved.
Bias, another respected trading analyst, echoed similar sentiments, suggesting that the SEC’s legal actions against Binance could be reaching a resolution.
While the outcome remains uncertain, speculation ranges from possible federal charges to substantial fines. Adam Cochran, a prominent figure in the crypto space, raised questions about the timing of Shroder’s departure, highlighting his absence from social media during the last eight months.
Cochran speculated that recent negative developments, such as sealed SEC filings and impending action by the Department of Justice, could have influenced this decision.
The cryptocurrency world, known for its volatility, has served Binance.US as a reminder that this is not just limited to market charts. The coming months will be crucial in determining whether Binance.US can regain its position as a major player in the American crypto space.
By Audy Castaneda