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Binance US CEO Steps Down Amid Significant Staff Cut and Regulatory Pressure

Published September 21, 2023
9 months ago

Following an arduous period of dealing with regulatory issues and a one-third workforce cut, Binance US CEO Brian Shroder has stepped down. He has been temporarily replaced by Chief Legal Officer Norman Reed. The crypto trading platform, under the leadership of the prominent digital entrepreneur Changpeng “CZ” Zhao, is in the midst of eradicating over 100 job positions due to a heightened regulatory clampdown that threatens its operation.

BAM Trading Services, formally known as Binance, was initiated in 2019 to cater to US users prohibited from leveraging Binance Holdings. This Miami-based firm has been facing considerable legal and operational hindrances that have triggered another wave of job cuts this year.

Earlier this year, Binance Holdings and Zhao were accused by the US Securities and Exchange Commission (SEC) of customer fund mishandling, misleading both investors and regulatory bodies, and violating securities regulations. Binance and its affiliates have unequivocally denied these allegations.

Adding to its woes, the US Commodity Futures Trading Commission levelled charges against Binance and Zhao in March this year for alleged evasion of federal law. The Justice Department also has Binance hurdles to clear but has yet to charge the company for wrongdoing.

Still reeling from the SEC's action, Binance US's customers are currently unable to withdraw or deposit dollars. This was brought about by multiple banking partners severing relationships with Binance US leading to its dependence on alternative methods for its users to convert dollars to crypto.

Despite these challenges, monthly trading volume has dropped below levels recorded in early 2020, says Jacob Jospeh, an analyst at CCData.

Binance US's company spokesperson commented on the matter, "The SEC’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."

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