Binance Chief Executive Officer Changpeng “CZ” Zhao has commented on the recent exodus of top executives from the exchange’s US subsidiary in the last week.
On September 13, the CEO of Binance.US, Brian Shroder, resigned from the company amidst a general layoff that saw the exit of one-third of the company’s workforce.
In addition, two other top executives of the US-based exchange, Krishna Juvvadi, the Head of Legal, and Sidney Majalya, Chief Risk Officer, also stepped down from their positions on September 14.
Following the departure of Shroder and these other executives, there has been much speculation on the future of Binance.US, which is currently stuck in a legal battle with the US Securities and Exchange (SEC) and the Commodity Futures Trading Commission (CFTC).
Therefore, Binance’s global head, Changpeng “CZ” Zhao, has released a statement addressing the concerns of customers regarding these recent developments.
US Executive On Deserved Break, Ignore FUD – CZ
According to CZ’s X post on September 15, Binance users should pay little attention to the current FUD surrounding the exchange.
CZ comments on Shroder’s departure, describing it as a “deserved break” for the former executive who had achieved all set objectives for Binance.US since assuming the company’s CEO role two years ago.
There has been some speculation regarding recent management changes at @BinanceUS. Brian Shroder is taking a deserved break after accomplishing what he set out to do when he joined two years ago. Under his leadership, https://t.co/hSHrrlF7o7 raised capital, improved its product…
— CZ 🔶 Binance (@cz_binance) September 15, 2023
The Binance global head also proceeded to highlight these achievements, expressing much gratitude to Brian Shroder.
Under his leadership, Binance.US raised capital, improved its product and service offerings, solidified internal processes, and gained significant market share, all of which helped to build a more resilient company for the benefit of customers. We are grateful for his contributions.
Furthermore, CZ acknowledges the current challenges that confront Binance.US, stating the US crypto space is a “different place” from two years ago, with a now “increasingly hostile regulatory environment.”
However, He assures all customers that Norman Reed, the newly appointed CEO of Binance.US, has all the required expertise and experience to guide the company through these difficult times.
Reed, who is also the company’s former Chief Legal Officer, presents an impressive resume with work experience from the SEC, the Federal Reserve Bank of New York, the Depository Trust and Clearing Corporation (DTCC), and prominent blockchain company Ripple Labs.
Binance Troubles To Worsen?
The exodus of top executives from Binance.US this week only adds to the growing list of departures from the prominent exchange as it faces intense regulatory pressure globally.
Over the last few months, several high-profile employees have vacated Binance, including the company’s Global Product Lead, Mayur Kamat, Senior Director of Investigations Matthew Price, and Chief Strategy Officer Patrick Hillmann.
This efflux of high-ranking executives has led to speculations that Binance could soon experience an implosion similar to that of the FTX exchange in November 2022.
Binance is a complete disaster.
When 95% of your executives resign in the span of a year, you know something isn’t right…
They will eventually blow up, and have an even larger explosion than FTX. Don’t be surprised when it happens.
— WhaleWire (@WhaleWire) September 13, 2023
For context, Sam Trabucco, former co-CEO of Alameda Research, resigned from the FTX trading arm a few months before the exchange filed for bankruptcy.
However, it remains uncertain whether Binance is at risk of shutting down. On September 8, the company published its tenth reserve audit report, showing it holds assets valued far higher than customer funds. Albeit, this audit was conducted by an internal 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