Binance.US Loses More Executives Amid Regulatory Crackdown
Binance.US, the cryptocurrency exchange, has experienced more executive departures following the recent exit of its CEO, as it faces increasing regulatory pressure. According to sources familiar with the matter, the Head of Legal, Krishna Juvvadi, and Chief Risk Officer, Sidney Majalya, have left the company. This comes after Binance.US cut approximately 100 jobs this week.
Binance Revenues Plummet Amid Legal Battles
The regulatory lawsuits brought by the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have significantly impacted Binance.US’s business. Revenues have reportedly dropped from $10.6 billion in January to $70 million this month. Additionally, the US Department of Justice is currently investigating the company.
Krishna Juvvadi previously served as Uber’s first regulatory attorney and will now lead the legal department’s daily operations at Binance.US. Sidney Majalya joined the company after working as Intel’s Chief Compliance Officer.
Concerns Within Binance Lead to Staff Exodus
Binance has been experiencing a global exodus of staff in recent weeks, with a total of thirteen departures since July. Reports suggest that disquiet within the company about CEO Changpeng Zhao’s handling of the US Department of Justice investigation has contributed to this trend. However, Zhao has dismissed these reports as “FUD” and denied any plans for market withdrawals or product closures.
Despite regulatory challenges, Binance asserts that it remains financially stable and denies any comparison to bankrupt crypto exchange FTX. Richard Teng, Head of Regional Markets at Binance, emphasized that all assets are “backed one-to-one” and that there are no liquidity issues.
Hot Take: Binance.US Faces Ongoing Turmoil Amid Regulatory Pressure
Binance.US continues to grapple with the repercussions of regulatory lawsuits and investigations, leading to executive departures and job cuts. The significant decline in revenues highlights the substantial impact of these legal battles on the exchange’s business. Furthermore, the internal concerns within Binance have contributed to a growing staff exodus. While Binance maintains its stability and denies any comparison to FTX, the company faces ongoing challenges as it navigates the regulatory landscape.
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