Binance.US CEO steps down with exchange shedding 30% of its staff

• Binance.US has cut one-third of its staff, with company president Brian Shroder featuring among the exit lot.
• It comes barely weeks after its parent company, Binance.com, shed its high-profile executives.
• Despite broader market gloom, the retrenchment come as the exchange continues to face regulatory attack.

Binance.US, the subsidiary of Binance.com in the US, has laid off a significant number of its personnel, only weeks after the parent company also lost its high-ranking officers to layoffs and resignations.

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Binance.US loses top official among 30% staff cuts

Binance.US has lost its president, Brian Shroder, who resigned alongside over 100 staff who have been retrenched, making up one-third of the company’s employee base, according to a Bloomberg report. In his place, the company’s Chief Legal Officer (CLO), Norman Reed, has stepped in on a provisional basis.

[ ZOOMER ]https://t.co/AjIQ3kPdpj CEO RESIGNS: BBG

— zoomer (@zoomerfied) September 12, 2023

Shroder exits the trading platform after two years of service, having joined in September 2021. Alongside his exit, 30% of the staff will also be leaving the company, according a person close to the mater, who cited “declining business and broader market uncertainties.”

Notably, this marks the second series of layoffs this year, with the platform also bending to regulatory pressure by scaling back some of its operations.

Binance.US declining business provokes employee layoffs

The Binance ecosystem continues to navigate regulatory woes, with the US Securities and Exchange Commission (SEC), Commodities Futures and Trading Commission (CFTC), and the Department of Justice (DOJ) all on its case.

In the aftermath of the regulatory pressure, the exchange was compelled to cut down in its operations. For instance, its customers can no longer buy crypto on the platform using US Dollars (USD). Considering this accounted for a huge chunk of their business, the company has recorded a significant drop in its monthly volumes, with The Block’s data dashboard showing a stark drop of almost $9 billion, moving from the $10.58 billion recorded in January 2023 to around $70 million as of September the same year. This represents almost 99.33 % change.

Monthly exchange volume for crypto exchanges

Besides Binance.US, the parent company, Binance.com, also recorded headlining retrenchments only recently, with the majority comprising its top officials. Over the past nine months, the exchange has lost ten key executives from different departments, including its executive vice president, Helen Hai on September 6.

Binance CEO Changpeng Zhao (CZ) attempted to quell down the exits, noting that every firm has restructuring phases. He also assured its user base that the “Binance balance sheet and employee retention remain robust despite the recent market uncertainty.”

Saw some debates in the community. When you do the right thing, and there is FUD, you don't have to do anything. The community defends you.

Let me summarize. There have been a lot of negative news/rumors, bank runs, lawsuits, closing of fiat channels, product wind downs,…

— CZ Binance (@cz_binance) September 7, 2023

According to CZ, the exits are often part of restructuring, and create growth opportunities for its remaining personnel. With some growing into bigger roles outside the exchange and others venturing out, CZ acknowledged having made introductions and references for many of them as part of the support and need to create more growth opportunities within its ecosystem.