Binance.US CEO Brian Shroder to Step Down, 100 Job Cuts Amid Regulatory Troubles

Summary

• Binance.US CEO Brian Shroder is stepping down amid regulatory challenges and a major restructuring effort.
• Over 100 jobs, about one-third of the company's workforce, will be eliminated as part of the restructuring.
• Norman Reed, the company's general counsel since December 2021, will serve as the interim CEO.
• This comes after the U.S. SEC filed a civil complaint against Binance and its founder, accusing them of attempting to circumvent securities laws.

Binance.US, the U.S. affiliate of the leading crypto exchange Binance, has announced the departure of its CEO, Brian Shroder. This move comes alongside a major restructuring effort that will result in the elimination of over 100 jobs, accounting for roughly one-third of the company's workforce. This move reflects the operational challenges faced by Binance.US following legal action against the exchange by regulatory authorities.

Norman Reed, who has been serving as the company's general counsel since December 2021 will take over the role on an interim basis.

This development comes in the wake of the U.S. Securities and Exchange Commission (SEC) filing a civil complaint against Binance, the world's largest cryptocurrency exchange, and its founder Changpeng Zhao. The SEC has accused them of establishing Binance.US as part of a "web of deception" to circumvent securities laws designed to safeguard U.S. investors.

A spokesperson for Binance.US stated, "The actions we are taking today provide Binance.US with more than seven years of financial runway and enable us to continue to serve our customers while we operate as a crypto-only exchange." However, no specific reason was provided for Shroder's departure.

Binance has witnessed several executive departures in recent months, including the resignation of its global head of product, Mayur Kamat, earlier this month.