Binance.US has lost two more senior executives following the exit of CEO Brian Shroder. The latest departures come just a day after the layoff of one-third of the crypto exchange’s workforce as it continues to fight a lawsuit initiated by the U.S. Securities and Exchange Commission (SEC).
Two More Top Binance.US Execs Depart
Two more executives at Binance.US, the American arm of the leading crypto exchange Binance, are leaving the firm.
According to a Friday report by the Wall Street Journal citing sources familiar with the matter, the head of legal Krishna Juvvadi, and chief risk officer Sidney Majalya have called it quits. The WSJ noted that Juvvadi “was one of the company’s contacts for communicating with the SEC.”
The latest high-level departures follow CEO Brian Shroder’s resignation earlier this week, accompanied by a second round of layoffs at the company, affecting 100 employees.
The exact reasons for the exec’s exodus remain unknown. Nevertheless, it’s clear that Binance.US is experiencing heightened regulatory pressure. Both Binance and Binance.US were sued by the United States’ top market regulators in June. Between the Commodities and Futures Trading Commission (CFTC) and the SEC, each regulator’s extensive charges range from offering unregistered securities to market manipulation to commingling of customers’ funds.
Earlier this month, global head of product Mayur Kamat exited the firm after nearly a year and a half. Binance also lost general counsel Hon Ng, SVP for compliance Steven Christie, Chief Strategy Officer Patrick Hillmann, and Senior Director of Investigations Matthew Price, among many others, in the course of this year.
Binance CEO Changpeng Zhao has thus far dismissed any concerns about the sudden string of departures as “FUD.”
Binance.US has further been accused by the SEC of not cooperating in the ongoing probe against the exchange. The agency alleged in a court filing dated Sept.14 that Binance.US’s holding firm, BAM has submitted only 220 documents during the discovery process. Many of the produced files under the Consent Order “consist of unintelligible screenshots and documents without dates or signatures.”