Following legal issues with the SEC and CFTC, Binance.US says goodbye to a fraction of its employees.
Binance.US, the American division of the global cryptocurrency exchange Binance, has recently downsized its workforce by approximately 33% and announced the departure of its CEO Brian Shroder, signaling a period of challenges amid increased regulatory pressures.
Confirming these changes, a spokesperson from Binance.US explained that the layoffs were part of a larger strategy to secure the financial stability of the crypto exchange for the next seven years as it transitions into a crypto-only platform.
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However, a Binance.US spokesperson highlighted that enforcement actions by the US Securities and Exchange Commission have also played a part.
The <Securities and Exchange Commission’s> aggressive attempts to cripple our industry and the resulting impacts on our business have real-world consequences for American jobs and innovation, and this is an unfortunate example of that.
The company’s Chief Legal Officer, Norman Reed, has stepped in to fill the CEO role on a temporary basis, succeeding Brian Shroder, who joined the firm two years ago in September 2021.
Shroder's exit comes at a time when Binance and its US arm are under heavy scrutiny from regulators. Earlier this year, the SEC and the Commodity Futures Trading Commission (CFTC) filed lawsuits against Binance, Binance.US, and the crypto exchange's co-founder Changpeng "CZ" Zhao. The regulatory bodies accused the firms of operating an illegal trading platform, selling unregistered securities, and violating commodity laws.
Adding to the regulatory pressures, Binance.US temporarily halted its dollar deposits and fiat withdrawals on June 9th. Following this move, the crypto exchange operated as a crypto-only platform for two months before resuming USD operations in August.
The period of regulatory challenges has notably affected Binance.US' market position. According to data from Kaiko, cited in a Reuters report, the crypto exchange's US market share plummeted from 22% in April to just 0.9% at the end of June.
Binance.US is navigating through a turbulent phase highlighted by increased regulatory actions and consequent internal restructuring. With a third of its staff laid off and a change in leadership, the company is refocusing its strategy to weather these challenging times.
