Binance.US CEO Exits as Crypto Giant Navigates Turbulence
Brian Shroder, the former CEO of Binance.US, has resigned from the crypto trading platform. According to a company spokesperson, Norman Reed, the Chief Legal Officer, has stepped in as an interim leader.
This change comes amid a major workforce reduction of over 100 positions, approximately one-third of the workforce, as Binance.US faces regulatory challenges under the leadership of Changpeng “CZ” Zhao. Binance.US, originally BAM Trading Services Inc., was established in 2019 for U.S. users due to restrictions on Binance Holdings.
This marks the second round of layoffs for the Miami-based firm this year, triggered by mounting legal and operational issues. In June, the U.S. Securities and Exchange Commission (SEC) accused Binance Holdings, Zhao, and Binance.US of various violations, allegations that Zhao and the companies have contested.
Following the SEC’s actions, Binance.US users faced limitations on depositing or withdrawing dollars, prompting the adoption of alternative methods for converting dollars into cryptocurrency. According to analyst Jacob Joseph, Binance.US’s global market share has plummeted from about 2.39% in April to approximately 0.6%, with monthly trading volume falling below early 2020 levels.
A spokesperson stated that these measures aim to secure Binance.US’s financial stability for over seven years and enable it to operate as a crypto-only exchange. They also criticized the SEC’s aggressive actions, highlighting their impact on American jobs and innovation.
Bloomberg reported layoffs at Binance.US following the SEC’s actions, while Binance Holdings has seen multiple executive departures in recent months. Brian Shroder joined Binance.US two years ago, bringing prior experience from Ant Group and Uber, following the departure of the previous CEO, Brian Brooks, after a four-month tenure.