Brian Shroder, the Chief Executive Officer of Binance US, has departed from the cryptocurrency trading platform. He has been temporarily succeeded by Norman Reed, who serves as the Chief Legal Officer, as confirmed by a company spokesperson.
The United States division of the cryptocurrency exchange has also downsized its workforce. Binance US layoffs amount to approximately one-third of its staff, equivalent to around 100 positions.
The spokesperson stated,
This departure aligns with the company’s actions to reduce its workforce due to regulatory pressure, all under the leadership of Changpeng Zhao, the embattled digital entrepreneur. The exchange, formally known as BAM Trading Services Inc., was established in 2019 to cater to US users who are restricted from using Binance Holdings.
This marks the second round of workforce reductions for the Miami-based firm in 2023 as it grapples with a growing array of legal and operational difficulties.
SEC’s strike on Binance
In June, the US Securities and Exchange Commission (SEC) made accusations against Binance Holdings, Changpeng Zhao, and Binance.US, alleging mishandling of customer funds, misleading investors and regulators, and violating securities regulations. Zhao and the companies have refuted these allegations.
Back in March, the US Commodity Futures Trading Commission filed charges against Binance and Changpeng Zhao for “willful evasion of federal law.” Additionally, the Justice Department initiated an investigation into Binance, although it hasn’t officially accused the company of any misconduct.
Following the SEC’s actions, customers of Binance.US encountered difficulties in depositing or withdrawing dollars, largely due to several banking partners severing ties with the platform. Consequently, the company had to devise an alternative method for Binance US users to convert dollars into cryptocurrency.
Binance US’s global market share has dwindled from approximately 2.39% in April to just about 0.6%, as per Jacob Joseph, an analyst at CCData. Furthermore, monthly trading volume has dropped below levels seen in early 2020.
Binance US layoffs were followed by its global layoffs
After the SEC’s actions, Binance US layoffs an undisclosed number of employees, as reported by Bloomberg in June.
Furthermore, Binance Holdings has recently witnessed a series of departures among executives and other staff members. In September, two executives responsible for regions including Eastern Europe and Russia departed. August saw the departure of Binance’s Asia-Pacific head, and in July, several executives, including the Chief Strategy Officer, left the company.
The SEC’s aggressive attempts to cripple the crypto industry and the resulting impacts on Binance’s Business have real-world consequences for American jobs and innovation, and this is an unfortunate example of that.
Binance US faces scrutiny from analysts
The Binance US layoffs, along with the departure of Brian Shroder, are garnering scrutiny from analysts. This is particularly significant due to Binance.US’s assertion of separate management from its global counterpart. Earlier this year, a Wall Street Journal report unveiled a more interconnected relationship between the two entities than previously disclosed.
These developments raise questions among analysts about whether these changes indicate more profound, systemic challenges for Binance, encompassing its operations in the United States and globally.
Binance announces charity for Morocco earthquake
Meanwhile, In a blog post on September 12, Binance announced that Binance Charity intends to distribute up to $3 million worth of BNB to Binance users who are living in regions impacted by the recent earthquake in Morocco.
Binance Charity has established the eligibility criteria for users affected by the recent earthquake in the Marrakesh-Safi Province of Morocco. Users who completed Proof of Address (POA) before September 9, 2023, in that designated region will receive $100 in BNB directly into their Binance accounts.
For those in the affected area who haven’t completed the POA yet, Binance Charity will donate $25 in BNB to the Binance accounts of existing users who complete the POA after September 9, 2023, but before September 30, 2023.
Even active transacting users across Morocco, including those outside the affected region, will receive an airdrop of $10 in BNB each. These efforts are expected to assist approximately 70,000 Binance users residing in Morocco, with disbursements commencing September 12, 2023.