- Two additional executives exit Binance.US, according to a WSJ report
- This comes a day after Binance.US CEO Brian Shroder left his position
- Despite the staffing challenges, the platform is still operational.
In a Wall Street report on September 14, two more Binance.US executives have left the company amidst other departures and layoffs. This comes just a day after Binance.US CEO Brian Shroder left his position. A WSJ report citing familiar sources noted that Krishna Juvvadi, the head of the legal position, and Sidney Majalya, the chief risk officer, departed from the platform.
Juvvadi joined the platform in May 2022 as the Vice president and Head of Legal. Krishna carried out tasks such as day-to-day operations of the company’s legal department and advancing the company’s efforts to become the most compliant digital asset platform in the U.S. On the other hand, Majalya was hired by Binance.US in December 2021 after being Intel’s chief compliance officer.
Further, both departments conducted layoffs in June, highlighting that the exchange is preparing for expensive litigation with the United States Securities and Exchange Commission (SEC). The Reuters reports disclosed that several employees in the company’s legal, risk, and compliance departments were slashed. The exits of the senior staff of Binance.US coincide with the SEC’s ongoing tussle against the exchange.
Javvad, the WSJ report stated,’’ was one of the company’s contacts for communicating with the Securities and Exchange Commission.
Binance vs. the SEC
Despite Binance.US’s staffing issues, the platform is still operational. However, various services have been minimized, as broader regulatory challenges have led the platform to pause U.S. dollar support. The platform has offered crypto-only exchange since last month, as the company partnered with crypto payments firm Moon Pay.
In June, the SEC filed a lawsuit against Binance.US, Binance, and ChangPeng Zhao (CZ). The regulator claimed that the company inflated the platform’s trading volumes and other improprieties. Further, the SEC alleged that Binance.US boosted trading volumes by using multiple user accounts held by Sigma chain (a Swiss trading company allegedly owned by CZ.)
Binance.US has objected to SEC legal tactics and has requested a protective order against the regulatory. On September 12, the platform called SEC’s requests in a compel and reply motion ‘’unreasonable’’ and ‘’unduly burdensome.’’
Recently, CZ released a statement discussing the challenges facing Binance from a global view. CZ acknowledged the persisting negative news allegations and staff turnover. However, the platform CEO has maintained that the global exchange is not experiencing any liquidity problems. He said;
‘’Guess what we don’t have? No problems with liquidity. All withdrawals (and deposits) are handled correctly. All customer funds are safe and secured 100%.”
Crypto Community Reaction On Binance.US Layoffs
Various crypto enthusiasts have voiced their comments via social media platforms concerning Binance.US’s staff departure. A Bloomberg analyst James Seyffart has commented on X (formerly Twitter), stating that;
‘’ Well… this cannot be a good sign for whatever is going on with Binance.”
