Binance US CEO Brian Shroder Resigns Amidst Layoffs, Reports Bloomberg

Binance US CEO Brian Shroder Resigns Amidst Layoffs, Reports Bloomberg

Norman Reed, who serves as Binance US's Chief Legal Officer, is set to assume leadership following the sudden exit of the previous executive.

With utmost confidence, we announce the resignation of Brian Shroder, President and CEO of Binance US. This significant development, first reported by Bloomberg and subsequently confirmed by Decrypt on Tuesday, underscores the dynamic landscape of Binance, led by its CEO Changpeng 'CZ' Zhao, who has been steadfast in addressing and dispelling negative news or FUD (Fear, Uncertainty, and Doubt) surrounding the crypto empire.

Stepping into the role vacated by Shroder is Norman Reed, the Chief Legal Officer of Binance US. In conjunction with Shroder's departure, Binance US is currently undergoing a restructuring phase, resulting in the reduction of over 100 positions, amounting to one-third of its workforce.

Launched in 2019, Binance US serves as the United States-based arm of the Binance trading ecosystem, headquartered in Florida. While it may not match the volume of its parent company, Binance US fulfills a crucial role by granting access to the Binance brand for US citizens, overcoming legal restrictions that would otherwise impede their participation.

This year has witnessed the departure of several high-ranking executives from Binance, including Mayur Kamat, Global Head of Product; Hon Ng, General Counsel; Patrick Hillmann, Chief Strategy Officer; and Steven Christie, SVP for Compliance.

Brian Shroder assumed the position of CEO at Binance US in September 2021, following the departures of former CEO Brian Brooks and the firm's inaugural CEO, Catherine Coley, earlier in the same year.

Despite the challenges and negative rumors that have surfaced, such as bank runs, legal disputes, product discontinuations, staff turnover, and market exits, CZ Zhao has maintained an unwavering commitment to the company's financial health and customer security. He has reassured the community, stating on Twitter: "Guess what we don't have? No liquidity issues. All withdrawals (and deposits) are properly handled. All customer funds are #SAFU, and 100% reserved."

In June, Binance became embroiled in a legal dispute with the U.S. Securities and Exchange Commission (SEC), which alleged violations of U.S. securities regulations, including the sale of unregistered crypto assets and inadequate restrictions on U.S. investors accessing the platform.

Gurbir S. Grewal, Director of the SEC's Division of Enforcement, asserted, "We allege that Zhao and the Binance entities not only knew the rules of the road, but they also consciously chose to evade them and put their customers and investors at risk—all in an effort to maximize their own profits."

Notably, "Shark Tank" star and entrepreneur Kevin O'Leary predicted that the SEC's lawsuit would have a debilitating impact on Binance.

In December, during a Senate Committee on Banking, Housing, and Urban Affairs hearing, O'Leary accused Binance of causing the collapse of the defunct cryptocurrency exchange FTX. This accusation stemmed from CZ Zhao's announcement on Twitter that Binance would liquidate its FTX FTT token positions in November, coinciding with FTX's subsequent downfall.

Amid ongoing SEC challenges, Binance US transitioned to a "crypto-only" platform in June, suspending dollar deposits and temporarily halting fiat (USD) withdrawals. Last month, Kristen Hecht was appointed as the company's new Compliance and Money Laundering Reporting Officer.

During a recent Twitter Spaces session, CZ Zhao confidently dismissed his critics, asserting that Binance maintains a leading position in regulatory compliance and debunking efforts to equate it with FTX.

Despite this recent executive departure and legal tussles with the SEC, it's crucial to note that Binance retains its status as the world's largest cryptocurrency exchange by trading volume.

In CZ Zhao's words, "We are a much stronger company today than we were two years ago."