Binance US Legal and Risk Heads Step Down Amid Exec Exodus

Another two executives associated with Binance US are reportedly leaving the company, following ex-CEO Brian Shroder out the door.

The latest departures include legal head Krishna Juvvadi and Chief Risk Officer Sidney Majalya, according to the Wall Street Journal, which cites sources familiar with the matter.

Shroder’s departure earlier this week accompanied a broader round of layoffs at the firm, affecting one-third of its staff. Such layoffs have been commonplace for crypto firms over the past year, including its parent exchange Binance. Binance US was set up as a U.S.-based rival to San Francisco-based crypto exchange Coinbase.

Coinbase Announces Further Layoffs, Cutting Headcount by 950 Employees

Crypto exchange Coinbase today announced more sweeping layoffs, citing “the ongoing market conditions impacting the cryptoeconomy.” In an 8-K filing with the SEC, the firm said that this restructuring would cut the firm’s headcount by approximately 950 employees. The cost to do so, tallying severance packages, could range up to $163 million. The layoffs are expected to conclude by the second quarter of 2023, the filing continues. ‘Financial Regulators Should Be Limited to Centralized Actors’: Co…

NewsBusiness

Liam J. Kelly, Andrew AsmakovJan 10, 2023

Yet they also follow a slew of executive departures from both Binance and Binance.US, which began after each was sued by the United States’ chief market regulators earlier this year. Between the Commodities and Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC), each agency’s sweeping allegations range from securities fraud to market manipulation, to commingling of client assets.

They also alleged that Binance.US, which is supposed to be an independent entity from Binance, is actually closely tied with the international platform, extending concerns about the latter’s stability to American clients.

Previous names to exit Binance include SVP for compliance Steven Christie, general counsel Hon Ng, chief strategy officer Patrick Hillmann, and global head of product Mayur Kamat.

Thus far, Binance CEO Changpeng Zhao (CZ) has disregarded any concerns about the sudden wave of exits as “FUD.”

Travis Kling, a hedge fund manager and victim of FTX’s meltdown in November, called out Binance earlier this month for showing red flags that could signal an end to the exchange mimicking that of Sam Bankman-Fried’s crypto empire. CZ countered that his analysis only focused on the negatives.

“There are also: won court cases, bank run handled and then record deposits, new fiat channels, smooth sunsetting of old products and launching of new products, new hires, new markets,” he said.