Binance.US, the US division of prominent cryptocurrency exchange Binance, has made a significant announcement regarding the company’s operations. It revealed plans to lay off approximately one-third of its employees and stated that its chief executive officer, Brian Shroder, will be stepping down. The company attributed these decisions to the aggressive actions taken by the US regulator, the Securities and Exchange Commission (SEC) in recent months.
A spokesperson for Binance.US expressed concerns over the SEC’s approach, stating, “The SEC’s aggressive attempts to cripple our industry and the resulting impacts on our business have real-world consequences for American jobs and innovation, and this is an unfortunate example of that.”
While the specific reasons for Shroder’s departure were not disclosed, his exit follows a sequence of high-ranking executives leaving Binance amid mounting regulatory scrutiny. The company has been confronting significant legal challenges, starting with the SEC filing a lawsuit against Binance.US in June for allegedly operating an unregistered securities exchange. In addition, both the Commodity Futures Trading Commission and the Justice Department have initiated investigations into potential violations of US law by Binance.
The legal battles and the ever-increasing regulatory pressure have adversely affected Binance.US’s business landscape. Market data from Kaiko shows a substantial decline in its market share, dropping from 22% in April to less than 1% in June. Moreover, monthly trading volumes have witnessed a staggering 72% plunge from January to August, plummeting from $10.58 billion to just $290 million, as reported by The Block.
This recent round of layoffs follows a prior 10% staff reduction in June, shortly after the SEC lawsuit. Binance.US faces an uncertain future as it navigates the complex regulatory landscape and works to regain its market position.
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