In the face of intensifying scrutiny from US federal regulators, Binance, the premier cryptocurrency exchange, is experiencing an upheaval marked by the departures of key executives including the Chief Legal Officer, Strategy Head, and Investigations Director in recent weeks, and a surge in layoffs, according to a report by The Wall Street Journal.
Binance has been under fire from regulatory bodies across various countries. Last month, it was hit with a lawsuit from the U.S. Securities and Exchange Commission (SEC) accusing it of violating US securities laws. The pressure continues to mount in Europe, with multiple countries launching investigations, including probes into allegations of "illegally providing digital asset services" and "serious money laundering" against Binance's French division.
As The Wall Street Journal report suggests, with the growing investigatory pressure from US federal authorities, Binance appears to be in retreat. The departures of the Legal Head, Strategy Head, Investigations Director, and the Senior Vice President responsible for compliance in recent weeks signal turbulence within the largest cryptocurrency exchange.
However, Changpeng Zhao, Binance CEO, denied allegations of internal turmoil on July 7, emphasizing that personnel changes are a natural occurrence in any company given changes in market conditions, the global cryptocurrency environment, the organization's development, and individual circumstances.
Executive Exodus
The report noted that Binance's Chief Legal Officer, Hon Ng, was forced to leave his position recently due to disagreements with CEO Changpeng Zhao. He has been replaced by Eleanor Hughes, the Legal Head for Binance in the Asia Pacific, Middle East, and North Africa regions, who returned to Binance after a brief exit. Two other Binance lawyers have resigned recently.
Matthew Price, Binance's global head of investigations and intelligence, responsible for liaising with law enforcement agencies worldwide, has also left the company to join another firm. Patrick Hillmann, Binance's Strategy Head, announced his departure last Thursday after two years of steering Binance through unprecedented industry crises and regulatory challenges.
Senior Vice President in charge of compliance, Steven Christie, left citing exhaustion and a desire for more time with his family. He mentioned that Binance's executive leadership team's investment in compliance, personnel, and technology exceeded any place he had previously worked, or even heard of, throughout his career.
Layoffs and Staff Reduction
It is reported that Binance dismissed dozens of employees last week, with some not informed of the reasons, while others were told they were being laid off. There are also plans for cutting staff from the United States.
Binance has approximately 150 employees in the US and 8,000 worldwide, excluding those working for Binance's US exchange. Binance US has also recently laid off about 50 employees, accounting for 10% of its total staff.
