Binance.US, the American division of the cryptocurrency exchange, has made significant cutbacks, laying off around 100 employees, which accounts for approximately one-third of its staff. In addition to the layoffs, President and CEO Brian Shroder has also left the company. These actions were taken by Binance.US to ensure the exchange has a long-term financial runway as it transitions to becoming a crypto-only platform.
A spokesperson from Binance.US confirmed the layoffs and the departure of Shroder. They stated that these measures were necessary due to the challenging regulatory environment faced by the industry. The spokesperson emphasized that the Securities and Exchange Commission’s (SEC) aggressive attempts to undermine the industry have real-world consequences for American jobs and innovation. They stated, “this is an unfortunate example of that.”
Norman Reed, the chief legal officer, has been appointed as the interim replacement for Shroder. Shroder had joined Binance.US in September 2021 and his departure comes amidst ongoing regulatory actions against the exchange.
Earlier this year, both the SEC and the Commodity Futures Trading Commission (CFTC) filed lawsuits against Binance, Binance.US, and the exchange’s co-founder Changpeng “CZ” Zhao. The regulators accused the exchange of operating illegally, selling unregistered securities, violating commodities laws, and mishandling customer funds. This legal battle led Binance.US to suspend dollar deposits and halt fiat withdrawal channels in June.
For two months, Binance.US operated as a crypto-only exchange until it secured a partnership with MoonPay in August, which allowed it to reintroduce USD ramps. However, during this period, the exchange’s market share in the United States significantly decreased from over 22% in April to approximately 0.9% by the end of June, according to data from Kaiko.
It is worth noting that the article has been updated with a comment from a Binance.US spokesperson.
As Binance.US continues to navigate the challenging regulatory landscape, industry observers and market participants are closely watching the developments and their potential implications for the broader cryptocurrency industry.
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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