Binance.US recently trimmed down its staff with reducing its workforce by a third portion. The firm is currently in a legal tussle with SEC and facing a barrage of charges.
In accordance with the new changes, the firm has decided to let go of 100 employees. The key executive to leave the US branch is CEO Brian Shroder. Binance.US has confirmed layoffs and departure of its CEO from the organization.
The firm has retained that the staff was able to give the firm headway for 7 years of financial independence. At the same time, the firm has been working on becoming an exchange to offer virtual currency products only.
At the same time, Binance spokesperson has retained that the aggressive regulatory policies of SEC have crippled the industry leaders and led to loss of jobs in the country. At the same time, the firm alleged that such an approach was hindering the development of innovation in the blockchain sector.
Binance.US Appoints Chief Legal Officer Norma Reed on an Interim Basis
It is important to note that Shroder joined Binance in 2021 and he decided to take off in the current year on account of regulatory pushback. The firm has received lawsuits from SEC that have also addressed its executives including Shroder.
In addition to SEC, Binance is also facing a lawsuit from Commodity and Futures Trading Commission. One of the named executive in these lawsuits is Binance founder CZ. The exchange is facing the charges for dealing in unregistered securities.
SEC’s Lawsuit Against Binance.US
At the same time, it is also defending its position in the court for purportedly violating commodity law and misappropriation of consumer funds. Binance has also undertaken countermeasures such as halting USD deposits on 9th June. At the same time, the firm has announced that it will halt fiat withdrawals while the SEC lawsuit is in session.
Binance.US became a crypto-only exchange for two months. In August, the firm partnered with MoonPay to enable USD payment channels. Since July, the market share for Binance.US has dropped by 22% as per Kiako data.
BAM Trading Services operator Binance.US has filed a counter motion against the deposition requests submitted by SEC against its employees. The firm has countered that prosecution’s request for information and interrogation breach the scope of the consent order.
SEC has named former CEO Brian Shroder and CFO Jasmine Lee as named executives in their deposition appeal. Defense lawyers argued in court that both executives did not have unique information about exchange and custody of consumer funds that overturn the requirement from prosecutors.
In addition, BAM has also countered SEC allegations about the commingling of customer funds by demanding for solid evidence to back their assertions.
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