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Binance US CEO steps down, further cuts one-third of staff, what is the current situation?

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Binance US CEO steps down, further cuts one-third of staff, what is the current situation?

According to multiple foreign media reports, Binance US CEO Brian Shroder has left the company. Additionally, due to regulatory pressures, the company has laid off about one-third of its staff, more than a hundred positions. Binance has seen over 10 executives depart across various departments this year, and combined with a mysterious SEC request to seal lawsuit documents, there are growing concerns about the current situation at Binance US.

Binance US CEO Brian Shroder Steps Down

Sources revealed to Bloomberg and Cointelegraph and other foreign media outlets that following a second round of layoffs affecting nearly one-third of the workforce, Binance US CEO Brian Shroder has resigned and left the company. The position will be temporarily filled by Binance US General Counsel Norman Reed.

Shroder, who joined Binance US in 2021, previously held senior management positions in strategy and business development at Ant Group and Uber.

Prior to this, following scrutiny from the U.S. Securities and Exchange Commission (SEC), Binance US shifted its focus to a pure cryptocurrency exchange.

A spokesperson for Binance US stated:

The SEC is actively trying to weaken our industry, and the impact on our business will have serious consequences for employment and innovation in the United States. This is an unfortunate example.

Binance US Trading Volumes Decline

According to data from The Block, Binance US's monthly trading volume has significantly decreased from $10.58 billion in January to $70 million this month.

Similarly, as reported by Reuters on July 5, citing Kaiko data, Binance US's market share in the local market has dropped from 22% in April to around 0.9% by the end of June.

Adam Cochran: Shroder Has Been Absent for 8 Months

Adam Cochran, partner at venture capital firm Cinneamhain Ventures, commented that Shroder has not tweeted for 8 months, and the news of his departure was released after the SEC filed sealed lawsuit documents against Binance, further fueling concerns about the true situation at Binance US.

Additionally, some users speculate that Binance may eventually exit the U.S. market, while Binance International will pay unprecedented fines and continue forward.

Executives Departing One after Another

In June this year, the SEC filed a lawsuit against Binance, accusing the exchange of selling unregistered securities. Through a 136-page complaint, its founder CZ was accused of engaging in various fraudulent activities, misappropriating user funds, concealing data, and deliberately evading the law.

Following this event, since the beginning of this year, 10 executives have left Binance, including regional heads, strategists, and several compliance and legal advisors, seen as a warning sign.

However, CZ responded to FUD, emphasizing that negative news always spreads more widely than positive news.

Binance Compliance Challenges

Over the years, Binance has faced regulatory issues in dozens of countries. It has hired many former government officials and compliance officers to help it comply with regulatory requirements.

However, some of these executives have quietly left the company in recent months, further deepening concerns about its future.