NewsletterBinance.US Cuts Down Staff By 100 Positions Amid SEC Crackdown
There’s a major staff reshuffling happening at Binance.US as the chief executive officer Brian Shroder departs and is replaced by Chief Legal Officer Norman Reed, on an interim basis.
The development comes as Binance.US has cut down its staff by nearly 100 positions amid the strong regulatory crackdown from the US Securities and Exchange Commission (SEC). This marks the second round of job cuts this year for Binance.US, which is grappling with a growing list of legal and operational challenges.
In June, the U.S. SEC leveled accusations against Binance Holdings, its CEO Changpeng Zhao, and Binance.US, alleging mishandling of customer funds, misleading investors and regulators, and violations of securities regulations. Zhao and the companies have strongly refuted these claims.
Following the SEC’s actions, customers of Binance.US encountered difficulties in depositing or withdrawing dollars. This happened as several banking partners started severing their ties with the platform. As a workaround, the company had to implement an alternative method for Binance.US users to convert dollars into cryptocurrencies.
In March, the U.S. Commodity Futures Trading Commission (CFTC) also charged Binance and Zhao with “willful evasion of federal law.” Additionally, the U.S. Department of Justice is conducting an inquiry into Binance, although it has not yet accused the company of any wrongdoing.
Binance.US Declining Market Share
Binance.US has seen its share of the global market contract significantly, dropping from approximately 2.39% in April to just around 0.6%, as reported by Jacob Joseph, an analyst at CCData research. Moreover, the platform’s monthly trading volume has dipped below levels recorded in early 2020. Speaking on the current development, a Binance.US spokesperson told Bloomberg:
“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. 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.”
Reportedly, the global arm – Binance Holdings has also been cutting down on staff in recent months.
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