Binance CEO Changpeng Zhao, also known as CZ, has addressed the recent departure of top executives from the company's US subsidiary. Brian Shroder, CEO of Binance.US, resigned on September 13 as part of a larger layoff that saw one-third of the company's workforce leave.
Additionally, the Head of Legal, Krishna Juvvadi, and Chief Risk Officer, Sidney Majalya, also resigned on September 14. With these departures, there has been speculation about the future of Binance.US, which is currently involved in a legal dispute with the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). CZ has released a statement to address customer concerns about these recent developments.
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Binance CEO on US Executive Exit. US Executive On Deserved Break, Ignore FUD – CZ
On September 17, CZ posted an update on Binance, advising users to not pay much attention to the current FUD surrounding the exchange. In the post, CZ commented on the departure of former Binance.US CEO Brian Shroder, describing it as a well-deserved break for the executive who had successfully achieved all set objectives during his two-year tenure. Binance CEO on US Executive Exit. CZ also expressed gratitude to Shroder and highlighted his achievements. Here is what CZ said:
Under his leadership, Binance.US raised capital, improved its product and service offerings, solidified internal processes, and gained significant market share, all of which helped to build a more resilient company for the benefit of customers. We are grateful for his contributions.
CZ, the founder of Binance, acknowledges the challenges faced by Binance.US due to the current regulatory environment in the US. However, he assures customers that the newly appointed CEO, Norman Reed, has the required expertise and experience to guide the company through these difficult times. Reed, who is also the company’s former Chief Legal Officer, has an impressive resume with work experience from the SEC, the Federal Reserve Bank of New York, the Depository Trust and Clearing Corporation (DTCC), and prominent blockchain company Ripple Labs.
Binance Troubles To Worsen?
The departure of top executives from Binance.US this week adds to the growing list of departures from the exchange as it faces increasing regulatory pressure worldwide.
In recent months, several high-profile employees have left Binance, including Mayur Kamat, the company's Global Product Lead, Matthew Price, Senior Director of Investigations, and Patrick Hillmann, Chief Strategy Officer.
The departure of these high-ranking executives has led to speculation that Binance could potentially face challenges similar to those experienced by the FTX exchange in November 2022.
To provide context, Sam Trabucco, former co-CEO of Alameda Research, resigned from the FTX trading arm a few months prior to the exchange filing for bankruptcy.
However, it is uncertain whether Binance is at risk of shutting down. On September 8, the company published its tenth reserve audit report, which indicates that it holds assets valued significantly higher than customer funds. It is important to note that this audit was conducted by internal staff.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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