Binance CEO Changpeng “CZ” Zhao has commented on the departure of an executive from the exchange’s U.S. subsidiary last week.
On September 13, Binance.US CEO Brian Shroder resigned amid sweeping layoffs at the company, resulting in the departure of one-third of the company’s employees.
In addition, two other senior executives of the US exchange – legal director Krishna Juvvadi and chief risk officer Sidney Majalya – also resigned on September 14.
The departure of Schroeder and other executives has generated much speculation about the future of Binance.US, which is currently embroiled in legal proceedings with the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
As a result, Binance Global Head Changpeng “CZ” Zhao released a statement addressing customer concerns regarding these latest developments.
US execs deserve a break, ignore the FUD – CZ
According to CZ X posts On September 15th, Binance users should be less concerned about the FUD currently surrounding the exchange.
CZ commented on Schroeder’s departure, calling it a “well-deserved break” for the former executive, who had achieved all of Binance.US’ stated goals since taking over as CEO of the company two years ago.
There has been some speculation regarding recent management changes @BinanceUS. Brian Shroder is enjoying a well-earned break after completing the goals he set when he joined two years ago. Under his leadership, https://t.co/hSHrrlF7o7 raised funding, improved its product…
— CZ ? Binance (@cz_binance) September 15, 2023
The head of Binance Global also highlighted these achievements and expressed his gratitude to Brian Shroder.
Under his leadership, Binance.US has raised capital, improved products and services, solidified internal processes, and gained significant market share, all of which has helped build a more resilient company that brings customers Benefit. We thank him for his contribution.
In addition, CZ acknowledged the current challenges facing Binance.US and said that the U.S. cryptocurrency field is “different” than it was two years ago and now has an “increasingly hostile regulatory environment.”
However, he assured all clients that Binance.US’ newly appointed CEO Norman Reed has all the expertise and experience needed to guide the company through these difficult times.
Reed is also the company’s former chief legal officer and has an impressive resume, with experience at the SEC, the Federal Reserve Bank of New York, the Depository Trust and Clearing Corporation (DTCC), and prominent blockchain company Ripple Labs .
Binance’s troubles worsen?
Executive departures from Binance US this week add to the list of departures from the prominent exchange as the exchange faces intense regulatory pressure around the world.
Several high-profile employees have left Binance over the past few months, including the company’s global head of product Mayur Kamat, senior director of investigations Matthew Price, and chief strategy officer Patrick Hillmann.
The exodus of top management has fueled speculation that Binance may soon experience an implosion similar to that of the FTX exchange in November 2022.
Binance is a complete disaster.
When 95% of executives quit within a year, you know something is wrong…
They will eventually explode, and the explosion will be bigger than FTX. Don’t be surprised when it happens.
— WhaleWire (@WhaleWire) September 13, 2023
For context, former Alameda Research co-CEO Sam Trabucco resigned from FTX trading just months before the exchange filed for bankruptcy.
However, it is currently uncertain whether Binance is at risk of closure. On September 8, the company released its tenth reserve audit report, which showed that the value of the assets it holds is much higher than client funds. However, this audit was conducted by in-house staff.
Total crypto market cap valued at $1.037 trillion on the hourly chart | Source: TOTAL chart on Tradingview.com
Featured image from CNBC, chart from Tradingview