Brian Shroder, the president and chief executive officer (CEO) of the US arm of Binance, has left the cryptocurrency exchange amid a round of layoffs.
Shroder Steps Down
Citing statements from Binance’s spokesperson, Bloomberg reported that Shroder will be replaced on an interim basis by Chief Legal Officer Norman Reed.
Previously working as an executive at Uber, Shroder was appointed Binance.US president and CEO in September 2021 following the sudden departure of former CEO Brian Brooks.
According to the report, Binance.US is firing one-third of its workforce, or over 100 staff, alongside Shroder’s departure.
In a statement, Binance.US stated that the layoffs were necessary to ensure the company keeps operating in the US.
“The actions we are taking today provide Binance.US with more than seven years of financial runway and enable us to continue to serve our customers while we operate as a crypto-only exchange.”
Legal and Financial Challenges
Formally dubbed BAM Trading Services, Binance.US was launched in 2019, specifically to cater to US investors prohibited from accessing Binance Holdings. While the global exchange has expanded, its US arm has faced legal and financial challenges in recent months.
In June, the US Securities and Exchange Commission (SEC) sued Binance Holdings, CEO Changpeng Zhao (CZ), and Binance. US. for operating an illegal exchange and selling unregistered securities to investors in the US.
Following the lawsuit, several banking partners cut ties with Binance.US, resulting in customers’ inability to deposit or withdraw dollars on the platform. The crypto exchange later teamed up with MoonPay to allow users to convert dollars into crypto using a credit or debit card.
Earlier this year, the US Commodity Futures Trading Commission (CFTC) sued Binance and CZ for allegedly offering unregistered derivatives products in the US. The US Department of Justice (DOJ) is also investigating Binance for a possible role in facilitating money laundering and terrorist financing. However, the DOJ has not accused the company of any wrongdoing.
