Binance.US CEO Brian Shroder exits the company

Shroder and 100 other staff members will leave Binance.US as SEC battle continues

Chief executive Brian Shroder as well as 100 other staff members will be leaving Binance.US.

The latest departures make up roughly a third of the US affiliate arm of Binance and once again highlights the challenges the exchange continues to face.

General counsel Norman Reed – who has been at the company since December 2021 – is tasked with replacing Shroder during Binance’s uncertainty. 

A Binance.US spokesperson 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.”

Binance has seen a number of executives leave including global head of product, Mayur Kamat and chief strategy officer, Patrick Hillmann. Though it failed to comment on Shroder’s exit.

In June, the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its CEO Changpeng Zhao, alleging multiple violations of federal securities laws.

The suit claims that Binance, Binance.US, and Zhao offered unregistered securities to the public, including the BNB token and the Binance-linked BUSD stablecoin. It also accuses Binance's staking service of violating securities laws.

The SEC's lawsuit further asserts that Binance failed to register as a clearing agency, broker, and exchange. 

Additionally, the commission alleges that Binance allowed the commingling of customer funds and that Zhao secretly controlled Binance.US, while a Zhao-owned entity inflated Binance.US's trading volume.

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Written by David Kent

David has more than a decade of sports betting and sports writing experience working with some of the biggest names in the industry. He focuses on articles covering these subjects including how crypto is transforming sportsbooks.