Binance Holdings CEO Changpeng Zhao (CZ) has addressed rumors about the departure of Binance.US CEO Brian Shroder, stating that he is simply taking a well-deserved break after a successful tenure at the company.
Binance.US is a subsidiary of Binance Holdings, and the U.S.-based exchange has recently witnessed several top executives stepping down amid lawsuits from the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC).
In a statement on Twitter, CZ dismissed the rumors and affirmed that Shroder is leaving the company on good terms after accomplishing his goals within the past two years. CZ praised Shroder’s leadership and his contributions to the growth and development of Binance.US.
Binance is currently facing lawsuits from both the SEC and CFTC, alleging violations of securities and trading laws, including the sale of unregistered securities and mishandling of customer funds. As part of the SEC lawsuit, it was claimed that Binance had illegally mixed funds between its U.S. and international branches.
In the midst of this legal battle, Binance.US announced a significant reduction in staff and the departure of CEO Brian Shroder. Two more top executives, the head of legal Krishna Juvvadi and chief risk officer Sidney Majalya, also recently left the company. These departures have led to speculation on Twitter about the extent of Binance’s legal troubles.
CZ acknowledged the challenging regulatory environment faced by crypto firms and mentioned that the new CEO of Binance.US, Norman Reed, is the right person to lead the exchange in this changing landscape.
Despite criticism and concerns about its transparency and solvency, CZ has repeatedly denied any issues with liquidity and dismissed claims against Binance as unfounded.
Key Takeaways
- Binance CEO CZ denies rumors about the departure of Binance.US CEO Brian Shroder and clarifies that Shroder is taking a break after a successful tenure.
- Binance.US, a subsidiary of Binance Holdings, has seen multiple top executives resign amid ongoing lawsuits from the SEC and CFTC.
- Binance is facing legal action from both the SEC and CFTC for alleged violations of securities and trading laws.
- CZ assures that the new CEO of Binance.US, Norman Reed, is well-equipped to navigate the current regulatory environment.
