Downsizing gives the platform “more than seven years” of financial runway as the company faces operational challenges on US soil.
Binance.US, the US-based sister company of crypto exchange Binance, has downsized its team by one third, the company has announced.
CEO Brian Shroder will also leave the company, for reasons unspecified. Shroder’s position will be replaced by general counsel Norman Reed, Reuters reported.
The number of job losses comes in at around 100. Binance said that the move gives the company “more than seven years” of financial runway to continue running as a “crypto-only exchange” in the US.
The cutbacks come after a year of regulatory aggression from the US Securities and Exchange Commission (SEC), which sued Binance earlier this year for allegedly selling unregistered securities. The mammoth lawsuit accuses the platform of 13 charges including misleading investors, money laundering and mishandling customer funds – all of which the exchange strongly denies.
The SEC has cracked down particularly hard on Binance.US, which has resulted in serious operational challenges for the company.
“The SEC’s aggressive attempts to cripple our industry and the resulting impacts on our business have real world consequences for American jobs and innovation, and this is an unfortunate example of that,” the exchange said in a statement.
Binance has faced a wave of executive-level resignations over the past year, with chief strategy officer Patrick Hillmann and SVP for compliance Steven Christie both quitting in July. Additionally, product lead Mayur Kamat quit the company last week, citing 20 years of “non-stop product work”.
In his characteristically stoic attitude, Binance CEO Changpeng Zhao advised his followers on X to “ignore the FUD” (fear, uncertainty and doubt), pointing out that despite challenges, Binance has continued to prevail – winning lawsuits, hiring new staff and securing new fiat partners.
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