Binance Exodus Gathers Pace as Eastern Europe, Russia Executives Leave

Updated: 06 September 2023

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Binance is losing two more senior executives as the world’s biggest crypto exchange mulls an exit from the Russia market.

Gleb Kostarev, head of Eastern Europe and the Commonwealth of Independent States, shared his farewell message on LinkedIn today, while Vladimir Smerkis, general manager for Russia and the CIS, announced his departure in a Facebook post,.

Smerkis described his two years at Binance as an “incredibly cool adventure” and expressed gratitude to his team and colleagues.

He also promised to host a press conference in Russia within a fortnight. “I know you and the media will have tons of questions about the causes, future, thoughts and experiences,” he said. “I will definitely share everything. We will do a broadcast, or maybe a meeting in Moscow to talk to you.”

The crypto exchange’s CEO, Changpeng Zhao, responded to the departures on Twitter, telling people to ”Ignore FUD.“

“Some of our team members are growing into bigger roles, some outside of #Binance,“ he said. “I even made intros/references for many of them. This also creates more growth opportunities within #Binance, btw.”

Some of our team members are growing into bigger roles, some outside of #Binance. Some are doing new exciting ventures. I even made intros/references for many of them. We are supportive of everyone. We are one community.

This also creates more growth opportunities within…

— CZ 🔶 Binance (@cz_binance) September 6, 2023

The resignations follow a series of high-profile executive departures. They include the global head of product and design Mayur Kamat, chief strategy officer Patrick Hillman, former compliance head Steven Christie, general counsel Hon Ng and US-based chief business officer Yibo Ling.

A Wall Street Journal report, citing individuals familiar with the matter, said that Helen Hai, who had been in high-ranking positions at Binance since 2018, has also left the company.

Binance To Exit Russia?

The departures come amid reports that Binance is exiting the Russian market due to increased regulatory scrutiny related to sanctions imposed on the nation after it invaded Ukraine. The exchange is exploring various options, including a complete withdrawal from the Russian market, the WSJ reported

In recent weeks, Binance limited its Russia trading service, allowing users to exchange digital tokens only for rubles.

Mounting Scrutiny and Legal Challenges

Binance has also faced significant scrutiny, including legal action by the US Securities and Exchange Commission (SEC). The exchange is currently being investigated by the Justice Department regarding its money-laundering controls.