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Binance CEO responds to rumors, says US executive is ‘taking a deserved break’

Binance CEO responds to rumors, says US executive is 'taking a deserved break'

Binance Holdings CEO Changpeng Zhao (CZ) has dismissed rumors about Binance.US CEO Brian Shroder’s departure, stating that he is simply taking a break after a successful tenure at the company.

Binance.US is a subsidiary of Binance Holdings, and recently, a number of top executives have stepped down amidst lawsuits from the Securities and Exchange Commission and Commodities Futures Trading Commission.

In a statement on September 15, CZ advised people to ignore speculation and assured that Shroder was leaving the company on good terms after accomplishing his goals over the past two years.

CZ expressed his gratitude for Shroder’s contributions, including raising capital, enhancing product and service offerings, streamlining internal processes, and gaining significant market share.

Binance is currently facing lawsuits from both the SEC and CFTC for alleged violations of their laws, including the sale of unregistered securities and mishandling of customer funds. The SEC claims that Binance’s US and international branches have unlawfully mixed funds.

Amidst these legal challenges, Binance.US announced on September 13 that it would lay off one-third of its workforce, and Shroder would step down as CEO. On September 14, the head of legal, Krishna Juvvadi, and chief risk officer, Sidney Majalya, also resigned. These departures fueled speculation on Twitter that Binance may be facing more severe legal issues than previously known.

Referring to the lawsuits in his statement, CZ noted that the crypto market has evolved in the past two years, facing a more hostile regulatory environment. He expressed confidence in the new CEO of Binance.US, Norman Reed, as the right person to lead the exchange in this new era.

Binance is currently the largest cryptocurrency exchange globally, but it has faced criticism recently following the bankruptcy of the third-largest exchange, FTX, and fraud charges against FTX executives. Critics argue that Binance lacks transparency in its business practices and has not proven its financial stability. However, CZ has dismissed these concerns, stating that the company has no liquidity issues and that the allegations against it are baseless.