The CEO of Binance.US, the American branch of the largest cryptocurrency exchange, Binance, has stepped down as the company reportedly undergoes a 33% reduction in its workforce.
The cryptocurrency exchange intends to cut 100 positions, according to a statement from a company spokesperson.
This decision comes amidst a series of recent challenges for the exchange, including a lawsuit filed by the US Securities and Exchange Commission (SEC) in June. The SEC accused Binance’s parent company and its CEO, Changpeng “CZ” Zhao, of various charges, including mishandling customer funds and violating securities laws.
“The measures we are implementing today provide Binance.US with a financial runway extending beyond seven years, allowing us to continue serving our customers as a crypto-only exchange,” stated a company representative.
“The SEC’s vigorous efforts to hinder our industry and the resulting repercussions on our business have tangible effects on American employment and innovation, and this is a regrettable illustration of such consequences.”
Binance.US CEO Resigns
Brian Shroder, who has been at the helm of Binance’s American division, has departed from the cryptocurrency trading platform. As confirmed by a spokesperson, his role will be temporarily assumed by Chief Legal Officer Norman Reed.
Shroder joined Binance.US in 2021, taking on the roles of President and CEO, where he was responsible for directing the company’s strategic initiatives, fundraising efforts, and overseeing its business and corporate development. Additionally, he played a pivotal role in managing the company’s Legal, HR, and Product & Technology functions. Before his tenure at Binance, Shroder held high-level executive positions at Ant Group and Uber.
Furthermore, Shroder, an alumnus of Harvard Business School, boasts a diverse portfolio as an angel investor and serves as an advisor to various startup ventures.
Increasing Job Reductions
Binance has experienced a significant wave of departures among its executives and staff in recent months. In 2023 alone, more than 10 executives from various departments have reportedly resigned.
Helen Hai, who held the position of Executive Vice President at Binance, became the latest departure on September 6. On the same day, Gleb Kostarev, the Head of Eastern Europe and Russia at Binance, announced his resignation on Facebook.
Earlier in the month, Mayur Kamat, who served as the Product Lead at Binance for nearly 2 years, left the company, citing “personal reasons” and a desire to ensure a seamless transition to the next generation of leaders.
In July, a group of top executives left Binance on the same day, expressing dissatisfaction with Zhao’s response to an ongoing Department of Justice investigation, as reported by Fortune.
In response, CZ took to Twitter to address these reports, categorically denying them and labeling them as “fear, uncertainty, and doubt” (FUD).
