Binance.US has reduced its staff by nearly one-third which is the company’s second round of workforce reduction for the year 2023.
Amid a strong exodus, top executives of Binance.US have been leaving the exchange recently. On Thursday, September 14, the Wall Street Journal reported that Binance.US head of Legal Krishna Juvvadi and Chief Risk Officer Sidney Majalya have left.
Juvvadi joined the company in May 2022, while Majalya joined the exchange back in December 2021. Binance is encountering a challenging year as regulatory scrutiny intensifies, especially in the United States. In June, the Securities and Exchange Commission (SEC) initiated a lawsuit against the company, alleging violations of securities laws. This legal action followed earlier accusations from another American regulator, the CFTC.
In recent months, Binance has experienced significant departures from its leadership team. Global Product Lead Mayur Kamat left the company after serving for nearly a year and a half. Additionally, Binance saw the departures of Chief Strategy Officer Patrick Hillmann, Senior Director of Investigations Matthew Price, and Senior Vice President for Compliance Steven Christie, among others, throughout the year.
Additionally, just two days back, Binance.US Chief Executive Officer Brian Shroder left the crypto trading platform. This development comes as Binance.US has been rapidly reducing its staff amid the rift with the US SEC.
Binance.US Cuts Staff by More Than 100 Positions
Another report from Bloomberg noted that Binance.US has cut down its staff by one-third or 100 positions. This marks the second round of workforce reductions in 2023 for the Miami-based company, which is grappling with a growing set of legal and operational hurdles.
In June, the US SEC leveled accusations against Binance Holdings, Zhao, and Binance.US, alleging mishandling of customer funds, providing misleading information to investors and regulators, and violating securities regulations. Zhao and the entities involved have contested these allegations.
Following the SEC’s actions, Binance.US encountered issues with customers being unable to deposit or withdraw dollars, stemming from various banking partners severing their connections with the platform. As a result, the company had to implement an alternative approach for Binance.US users to convert dollars into cryptocurrencies.
Binance.US’s portion of the global market has dwindled to approximately 0.6%, down from around 2.39% in April, as outlined by Jacob Joseph, an analyst at research firm CCData. He also noted that monthly trading volume has dipped below levels seen in early 2020. Commenting on the job cuts, a spokesperson for the company said:
“The actions we are taking today provide Binance.US with more than seven years of financial runway and enable us to continue to serve our customers while we operate as a crypto-only exchange. The SEC’s aggressive attempts to cripple our industry and the resulting impacts on our business have real world consequences for American jobs and innovation, and this is an unfortunate example of that.”
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