In a recent Wall Street Journal article, it was revealed that Chief Risk Officer Sidney Majalya and Head of Legal Krishna Juvvadi are both leaving Binance.US. This news comes within two days after CEO Brian Shroder left the company and a third of its employees were laid off.
Two Executives Leave Binance US
It is noteworthy that Juvvadi was appointed in May 2022, after leaving Uber to serve as global leader of compliance. In addition, after working as Intel’s top compliance officer, Majalya started working for the firm in December 2021. He has also worked for Uber before Intel.
As The WSJ stated, Juvvadi, “was one of the company’s contacts for communicating with the SEC [United States Securities and Exchange Commission].”
New Chief Marketing Officer
The announcement was made shortly after the company named Rachel Conlan as its Chief Marketing Officer and not long after Binance US, the cryptocurrency exchange’s US unit, laid off about a third of its staff. Brian Shroder, the company’s president and CEO, left as a result of the layoffs. The company’s president and CEO, Brian Shroder, also left the company amid the layoffs.
Regulatory Actions Against Binance US
These reductions came about as the SEC and other regulatory agencies, including the CFTC and US Department of Justice (US DOJ), were investigating the company. In April, Bloomberg reported that Binance Holdings and its CEO Changpeng Zhao “CZ” were reprimanded by Rostin Behnam, the chairman of the Commodity Futures Trading Commission (CFTC), in April for breaking American regulations.
Pressure from the SEC
The US SEC filed a complaint against Binance in June this year. More specifically, the SEC filed more than a dozen complaints against the company, its US platform, and CEO Changpeng Zhao (CZ) in the District Court of Columbia on June 5. In a 136-page complaint, the SEC’s charges were related to the company not registering its Binance.com platform as a trading platform or broker-dealer clearing agency.