Binance.US CEO Brian Brooks, who was also the former general counsel of cryptocurrency exchange Coinbase, vacated his post on August 6. This comes as a surprise as Brooks took over the job from former CEO Catherine Coley as recently as May 1. Brooks cited “differences over strategic direction” in announcing his decision on Twitter.
Crypto community confused by resignation of CEO of Binance in US
The crypto community reacted surprised over Brooks’ abrupt resignation. Considering that Binance is facing regulatory backlash in several countries, Crypto Twitter speculated whether internal knowledge about bigger problems down the road led Brooks to resign. Recently, regulators in the UK, Germany, and Canada issued orders or warnings to Binance for failing to comply with local regulations.
Other sources cited a recent interview with Forbes in which Brooks indicated that the crypto exchange business is not profitable in the long run. His vision for Binance.US went far beyond operating just as a cryptocurrency exchange, which could have contributed to his decision.
Binance has developed a reputation in the crypto community for being very eager to launch new products but being built on sand as far as regulation goes. That might have been another factor contributing to the resignation as Brooks was quoted that he wouldn’t have taken the job if he hadn’t had a strong commitment from the board to lead a strong compliance program.” Regardless, Crypto Twitter users reacted mostly with confusion after welcoming Brooks’ hiring just a few months earlier.
Binance CEO remains unfazed
Binance CEO Changpeng Zhao, who only goes by his initials CZ in the crypto community, thanked Brooks for his service in a statement:
“Brian’s work for Binance.US has been invaluable and we hope he will continue to be an integral part of the crypto industry’s growth, advocating for regulations that move our industry forward. We wish him the very best in his future endeavors.”
CZ remained steadfast about the resignation not having any impact on the future of Binance in the US:
“I remain confident in Binance.US’s business and its commitment to serve its customers and innovate […] As one of the largest cryptocurrency exchanges in the United States, Binance.US is poised to continue to grow and empower the future of finance.”
Despite facing mounting pressure from regulators worldwide, CZ’s appointment of Brooks as Binance.US CEO was seen as somewhat of a coup. Brooks became Coinbase’s top lawyer in 2018 and left for a 10-month stint running the Office of the Comptroller of the Currency (OCC), the federal agency that oversees banks. After being tipped to become the next President of Circle, a stablecoin behemoth, he surprisingly signed with Binance.US, a competitor of his former employer Coinbase.
CZ is now facing somewhat of a tough task in finding a suitable replacement that will share his strategic vision for the company’s future and be well-equipped to deal with the challenges Binance.US is facing. It has been speculated that former CEO Catherine Coley might return to her post; however, she has yet to comment on the recent developments at Binance.US.