Binance.US, the American counterpart of the crypto exchange giant, has made a significant workforce reduction, cutting about one-third of its staff, equating to 100 positions. This move coincides with the departure of its President and CEO, Brian Shroder.
The decision to reduce staff and change leadership was confirmed by a Binance.US spokesperson, who cited the need to secure “more than seven years of financial runway” during the exchange’s transition into a crypto-exclusive platform. This shift comes in response to aggressive regulatory actions by the Securities and Exchange Commission (SEC), which have impacted the exchange’s operations and innovation.
Norman Reed, Chief Legal Officer, has stepped in as interim CEO following Shroder’s departure. Shroder had assumed the role in September 2021, and his exit comes amidst a series of regulatory challenges faced by the exchange.
Earlier this year, both the SEC and the Commodity Futures Trading Commission filed lawsuits against Binance, Binance.US, and its co-founder Changpeng “CZ” Zhao, alleging various violations, including running an illegal exchange, selling unregistered securities, and mismanaging customer funds. As a result of the legal battle with the SEC, Binance.US suspended dollar deposits and temporarily halted fiat withdrawal channels.
Binance.US operated solely as a crypto platform for two months, reopening USD ramps in August following a partnership agreement with MoonPay. Amid these challenges, a Reuters report, citing Kaiko data, indicated a substantial drop in Binance.US’s market share in the U.S. from over 22% in April to approximately 0.9% as of June 26.
