Two Key Executives Depart Binance.US Amidst Legal Issues
In the wake of CEO Brian Shroder’s departure and the recent layoff of a third of its staff, Binance.US, the United States offshoot of the international cryptocurrency exchange, is now facing the departure of two more top executives. According to The Wall Street Journal, Head of legal Krishna Juvvadi and chief risk officer Sidney Majalya have decided to leave the company.
Krishna Juvvadi, who was hired in May 2022 from Uber, where he served as the global head of compliance, and Sidney Majalya, who joined Binance.US in December 2021 after his tenure as Intel’s chief compliance officer, have announced their resignations. Notably, both Juvvadi and Majalya have previous experience working at Uber.
According to The WSJ, Juvvadi was one of Binance.US’s contacts for communicating with the United States Securities and Exchange Commission (SEC). This is particularly significant as Binance.US is currently facing legal action from the SEC.
The SEC filed a lawsuit against Binance.US, Binance, and CEO Changpeng Zhao in June, alleging that they engaged in unregistered securities operations and other improprieties. This legal action led to issues with Binance.US’s banking partners and caused interruptions in U.S. dollar deposits and withdrawals. These issues were only resolved in August when the company partnered with crypto payments firm MoonPay.
It is worth noting that Binance.US has objected to the legal tactics employed by the SEC. The company requested a protective order against the SEC in August and criticized the SEC’s requests as “unreasonable” and “unduly burdensome” in a recent filing.
In addition to the ongoing legal battles with the SEC, Binance has also faced a lawsuit from the Commodity Futures Trading Commission (CFTC) in March, which alleged that the exchange violated trading and derivatives rules.
The departure of Krishna Juvvadi and Sidney Majalya adds to the list of executives who have left Binance this year, signaling further instability within the organization. The company has also implemented layoffs as part of its efforts to overcome the challenges it is currently facing.
Binance.US has not provided any public response regarding the recent departures and legal issues.
❗Follow us on Twitter to get all the latest crypto news as soon as they're out! 🚀