Binance US, the American subsidiary of the crypto exchange giant, has laid off 100 employees, or a third of its staff, following the departure of its CEO.
Bloomberg reports that the former CEO, Brian Shroder, who joined Binance in September 2021, will be temporarily replaced by Norman Reed, the Chief Legal Officer.
Binance said that the SEC’s actions against the crypto industry have affected its business and threatened U.S.-based jobs and innovation. As a result, the company has laid off a third of its staff.
Shroder’s exit is the latest in a series of resignations by high-profile executives from Binance, facing regulatory challenges in the U.S. and other countries.
Binance US regulatory challenges
Binance, one of the world’s largest cryptocurrency exchanges, is under investigation by the US Securities and Exchange Commission (SEC) for possible violations of securities laws. The SEC has questioned Binance’s compliance with U.S. regulations and ability to operate in the complex global financial environment.
Binance has stated that it is willing to cooperate with the SEC. However, it also believes that the regulator has acted unilaterally and resorted to litigation. To address this, Binance has hired new officials to strengthen its compliance team and improve its reputation in the industry.
Binance has also filed a petition for a protective court order to limit the SEC’s demands for exchange communications.
Binance argues that the regulator’s requests are overly broad and impose an undue burden on the exchange. Binance claims that the SEC is conducting a “fishing expedition” and that its requests for information, including client assets, are irrelevant to the main issues of the case.
Besides the SEC’s probe, Binance has also faced criticism from US senators. Senators Elizabeth Warren, Chris Van Hollen, and Roger Marshall have accused the exchange and its affiliates of facilitating money laundering, tax evasion, and other illicit activities through their platforms. They have urged the SEC to take action against Binance and protect US investors and consumers.