Binance US Reduces Workforce; CEO Brian Shroder Resigns

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  • Binance US CEO Brian Shroder leaves the platform amidthe ongoing legal scrutiny.
  • The company’s Chief Legal Officer Norman Reed will replace Shrodan on an interim basis.
  • The resignation came following the company’s decision to reduce its workforce by one-third.

Amid a series of developments in the crypto space, Brian Shroder, the Chief Executive Officer of Binance US has resigned from his position. The news followed Binance CEO Changpeng Zhao’s decision to eliminate one-third of the company’s workforce, driven by the tightening regulatory pressures in the United States.

In response to the Bloomberg report, Adam Cochran, a prominent figure in the crypto universe, took to Twitter to reinforce his belief that the collapse of Binance would “be a longer more painful ride.” Referring to the new development in the platform, Cochran cited “If Bloomberg news about the CEO in the US resigning barely nudges this market, I’m not stupid enough to think my late night tweet is going to do it”.

According to a Binance spokesperson, Norman Reed, the Chief Legal Officer of the platform would take charge, replacing Shroder, on an interim basis. Reiterating the company’s struggles over the year to withstand the “aggressive” scrutiny of the Securities and Exchange Commission (SEC), the spokesperson asserted, “The actions we are taking today provide Binance.US with more than seven years of financial runway and enable us to continue to serve our customers while we operate as a crypto-only exchange”. He added:

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.”

In June, the SEC charged Binance US, previously known as BAM Trading Services Inc., for allegedly violating securities laws. The regulators also alleged the founder Zhao for his heavy involvement in the platform’s US-affiliated branch operations. Maintaining that Binance and its founder “misled investors” by concealing the real operator of the firm, SEC Chair Gary Gensler proclaimed, “Through thirteen charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law”.

The crypto community has seen a series of departures in Binance over the past few weeks. Since July, the platform has witnessed more than 10 chief executives leaving Binance. Last week, Zhao announced the departure of Binance Russia’s members including Head Gleb Kostarev and General Manager Vladimir Smerkis.