Binance US In Decline

Binance US loses CEO and cuts staff by a third due to market uncertainty and regulatory limitations. The exchange transitions to a crypto-only platform.

Sep 14, 2023 - 15:14
Sep 14, 2023 - 15:51
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Binance US In Decline
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Amidst cutting a third of its staff and a continuous decline in business turnover, Binance US also loses its CEO, Brian Shroder.

Binance US's CEO, Brian Shroder, has left the company following the announcement of a one-third staff cut. This move was forced by the CEX's market uncertainty and from a regulatory standpoint, which in the US has deeply limited its business. Shroder joined Binance in September 2021, and the former Uber executive now departs at a critical time for the American branch of the exchange.

A spokesperson for Binance told the press:

"The actions we are taking today provide Binance US with new financial assurances, allowing us to continue serving our customers while operating as an exchange dedicated exclusively to cryptocurrencies."

"The SEC, with its aggressive attempts to paralyze our industry, has had severe impacts on our business, as seen, with real consequences on employment and innovation."

Earlier this year, both the SEC and the Commodity Futures Trading Commission sued Binance, Binance US, and the exchange's co-founder, Changpeng "CZ" Zhao. They alleged that the company operated an illegal exchange, sold unregistered securities, violated commodities laws, and mishandled customer funds. As a result, on June 9, the exchange suspended dollar deposits and also paused fiat withdrawal channels amidst its battle with the SEC.

Following these challenges, Binance US transitioned to a crypto-only exchange for two months. It was only in August that they reopened a path for USD ramps after securing a partnership with MoonPay. Furthermore, a report from Reuters in July, citing Kaiko data, indicated that Binance US's market share in the US plummeted from over 22% in April to roughly 0.9% by June 26.

The US "subsidiary" saw its business opportunities shrink, with a significant reduction in customers no longer able to use US dollars to purchase cryptocurrencies on the platform. As a result, the company's monthly volumes have plummeted, dropping from $10.58 billion in January to just $70 million in the past month, as reported by The Block.

The parent company, too, had to deal with staff downsizing, including high-profile executives. For instance, as the Wall Street Journal reported, on September 6, Binance let go of executives overseeing its operations in Russia. In July, the head of strategy, Patrick Hillman, left the company along with Steven Christie, the compliance officer.

Philip Bohmer Philip is a seasoned journalist that brings clarity to the complex world of cryptocurrencies through his articulate and insightful articles. His passion for blockchain technology fuels his writing, making him a trusted voice in the rapidly evolving digital currency landscape.