Apart from the investigation initiated by the Department of Justice, the SEC sued Binance one month ago for listing unregistered securities, commingling customers’ deposits, and flouting KYC rules.
The recent departure of several top executives from leading cryptocurrency exchange Binance has sparked reactions amongst netizens who described the action as a “full-on turmoil”.
However, Changpeng ‘CZ’ Zhao, the Chief Executive Officer (CEO) of the exchange has debunked the narrative, claiming that it is just an attempt for media houses to generate and spread Fear, Uncertainty, and Doubt (FUD) in the industry.
4. More FUD about some departures. Yes, there is turnover (at every company). But the reasons dreamed up by the “news” are completely wrong.
As an organization that has grown from 30 to 8000 people in 6 years, from 0 to the world’s largest crypto exchange in less than 5 months…
— CZ 🔶 Binance (@cz_binance) July 6, 2023
In a Twitter post published earlier today, CZ said:
“More FUD about some departures. Yes, there is turnover (at every company). But the reasons dreamed up by the ‘news’ are completely wrong.”
Explaining further, he highlighted that the departure was all part of the company’s required turnover of staff. Additionally, he mentioned that all three executives did not leave in one week as was earlier speculated. Zhao pointed out that it was merely an exaggeration as only one of these executives left this week.
“As markets and the global environment for crypto changes, as our organization evolves, and as personal situations change, there is turnover at every company. We thank all of our ex-team members for their contributions to our growth and wish them all the best. We also congratulate our team members who have grown into these new roles. They are all truly high caliber,” Binance CEO tweeted.
A report from Fortune stated that General Counsel Hon Ng, Chief Strategy Officer Patrick Hillmann, and Senior Vice President of Compliance Steven Christie left their respective positions in the leading exchange. Bloomberg also announced that Yibo Ling, Binance’s Chief Business Officer, has left the company.
The news reports cite CZ’s handling of ongoing investigations as the reason behind the sudden departure of the said executives. Also, Fortune described the decision of the executives as “a management and strategic crisis for Binance at a time when it is navigating immense regulatory pressure”.
Former Binance Executives Confirm CZ’s Claim
Noteworthy, Hillmann confirmed that he is leaving Binance but on good terms, adding that his wife is having a baby and as such is the right time for him to step aside.
Christie also declared that his reason for leaving is quite different from what was reported. He cited health and family reasons as the drive behind his departure from Binance.
“I have been in crypto compliance since 2015 when I joined Xapo, spending the last ~6 years straight leading and growing the Compliance functions at Kraken and Binance without a break. At this point, I am simply tired,” Christie said.
As it is, Binance is already faced with a lot of pressure from United States regulators who are questioning its integrity and offerings. Apart from the investigation initiated by the Department of Justice, the Securities and Exchange Commission (SEC) sued Binance one month ago for listing unregistered securities, commingling customers’ deposits, and flouting Know-Your-Customers (KYC) rules.
The market share of the exchange’s US subsidiary Binance.US is not doing so well, losing more than 20% of its market share as of Thursday, July 6. So far, the impact of the supposed FUD is yet to be published.