Binance US Lays Off a Third of its Workforce

According to a recent report, the United States branch of the cryptocurrency exchange, Binance US, has laid off around a third of its workforce, including its president and CEO, Brian Shroder, also departing the company. 

Binance US has Laid of 100 Employees

A representative for Binance US confirmed the dismissal of 100 employees and the departure of Shroder, saying the decision was made in order to provide the platform “more than seven years of financial runway” as it transitioned to being a cryptocurrency-only exchange. 

CLO Norman Reed Takes Over

According to the spokesperson, Chief Legal Officer Norman Reed has temporarily taken over for Shroder, who Shroder Joined the crypto exchange in September 2021.

The spokesperson noted: “The [Securities and Exchange Commission’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.”

Regulatory Actions Against Binance US

The news regarding the layoffs comes amid a lot of recent regulatory actions against the company. The business has been the subject of investigations from the SEC as well as other regulatory authorities, which is worth mentioning. 

On June 5, the SEC lodged more than a dozen charges with the District Court of Columbia against Binance, its US platform, and CEO Changpeng Zhao (CZ) with labeling the firm as “blatant disregard” for American law. In the case, the SEC also asserts that the company was unsuccessful in registering its Binance.com portal as a trading platform or broker-dealer clearing agency. 

Settlement with the SEC

Moreover, Judge Amy Berman Jackson of the United States gave her approval for the expected settlement between Binance US, Binance, and the Securities and Exchange Commission (SEC) back in June. Speculation regarding the settlement began when Judge Jackson asked the SEC and Binance  US to move to magistrate court with the goal to try to reach an agreement in order to save customer assets without shutting down the exchange.