Binance US Branch, the U.S. subsidiary of the cryptocurrency exchange giant, has made a significant reduction in its workforce, cutting approximately one-third of its staff, which amounts to around 100 positions. Alongside this workforce reduction, the company has witnessed the departure of its President and CEO, Brian Shroder.
A spokesperson from Binance US Branch has confirmed both the staff layoffs and Shroder’s exit, emphasizing that these measures were taken to provide the exchange with an extended financial runway, allowing it to focus on its transition into a crypto-only exchange.
The spokesperson pointed to the aggressive actions of the U.S. Securities and Exchange Commission (SEC) as a major factor in these decisions. They noted that the SEC’s efforts to exert control over the cryptocurrency industry have had tangible consequences, including job losses and a potential impact on innovation within the sector.
In response to Shroder’s departure, Binance US Branch has appointed Norman Reed, the Chief Legal Officer, to serve as interim CEO. Shroder had joined Binance US Branch in September 2021 but left amid a wave of regulatory actions taken against the firm in recent months.
Earlier this year, both the SEC and the Commodity Futures Trading Commission (CFTC) filed lawsuits against Binance, Binance US Branch, and the exchange’s co-founder, Changpeng “CZ” Zhao. The allegations included operating an illegal exchange, selling unregistered securities, violating commodities laws, and mishandling customer funds.
On June 9, Binance US Branch suspended dollar deposits and notified customers of the temporary pause in fiat withdrawal channels as it grappled with the SEC’s regulatory challenges. During this period, the platform shifted to operating exclusively as a crypto-only exchange. It only reinstated USD ramps in August following a partnership agreement with MoonPay.
According to report in July , citing data from Kaiko, indicated that Binance US Branch had seen a decline in its market share in the U.S., dropping from over 22% in April to approximately 0.9% by June 26. These developments underscore the regulatory pressures and challenges faced by cryptocurrency exchanges in the United States.