Binance.US Appoints New CEO As Changpeng Zhao Lashes Out At Critics

Updated: 18 September 2023

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Binance.US appointed a new CEO as founder Changpeng Zhao lashed out at critics for creating ”FUD” around the beleaguered company.

Chief legal officer Norman Reed will replace former CEO Brian Shroder, Zhao said in a tweet. Shroder left last week as the company slashed 30% of its workforce amid lawsuits and a regulatory crackdown that is squeezing its revenues.

“The crypto market is in a different place now than it was two years ago, with a rapidly evolving and increasingly hostile regulatory environment,” Zhao said. “Norman Reed – former SEC, New York Fed, Ripple, and DTCC executive – is the right person to lead.”

Zhao said that Shroder is taking a “deserved break” after accomplishing what he set out to do when he joined two years ago, listing his accomplishments as raising capital, improving products and service offerings, strengthening internal processes, and gaining significant market share. The company is ”more resilient” as a result, he added.

There has been some speculation regarding recent management changes at @BinanceUS. Brian Shroder is taking a deserved break after accomplishing what he set out to do when he joined two years ago. Under his leadership, https://t.co/hSHrrlF7o7 raised capital, improved its product…

— CZ 🔶 BNB (@cz_binance) September 15, 2023

Binance’s Legal Battle With The SEC

Parent Binance, the world’s biggest cryptocurrency exchange, has faced an almost perfect storm in the US this year. The SEC filed a lawsuit against it in June, alleging that it violated securities laws, while in March the US Commodity Futures Trading Commission charged Binance and CEO Changpeng Zhao with ”willful evasion of federal law.”

Court filings unsealed on Thursday accused Binance.US of not cooperating with the SEC’s investigation. The securities regulator raised concerns over Binance’s use of the Ceffu custody service that links to Binance.com, saying it violates an earlier deal to stop Binance.US assets from commingling with those of Binance.com.

Binance Staff Exodus Quickened

The US staff cuts and Shroder’s departure last week came as an exodus of staff globally from the firm gathered pace. Eleven top staff have left since July with four of them exiting last week. Fortune reported that the exodus was sparked in part by disquiet within the company about the way Zhao has handled an investigation into the exchange by the US Department of Justice.

#Binance Resignations Past 3 Months:

Binance:
• Chief Strategy Officer Resigns
• VP of Compliance Resigns
• Head of Product Resigns
• General Counsel Resigns
• Head of APAC Resigns

Binance US:
• CEO Resigns
• Head of Legal Resigns
• Chief Risk Officer Resigns

— Watcher.Guru (@WatcherGuru) September 15, 2023

Zhao has hit back at reports about staff departures, rumours about plans for market withdrawals and some product closures,. ”Ignore FUD. Keep Building,” he tweeted.

Revenues at Binance.US have collapsed to $70 million this month from $10.6 billion in January, The Block reported. But the company has dismissed parallels between itself and bankrupt crypto exchange FTX, stating that all its asset are “backed one-to-one” and providing assurances that it has no liquidity issues.

Despite facing lawsuits, heightened regulatory scrutiny and challenges in some regions, Binance remains financially stable and is not comparable to the now-bankrupt FTX head of regional markets Richard Teng told CoinTelegraph in an interview.