Binance CEO Changpeng “CZ” Zhao used social media to quash negative rumors about the departure of Binance.US CEO Brian Shroder, saying current regulatory challenges required new leadership for the exchange.
The CEO of Binance International said the US regulatory landscape is “rapidly evolving and becoming increasingly hostile” to the crypto industry, and that Binance.US needs leadership equipped with the skills to navigate it.
CEO of Binance.US replaced
CZ said Shroder was appointed to fulfill responsibilities related to raising capital, improving product and service offerings and strengthening internal processes. He added that Shroder played a critical role in growing Binance.US’ market share and “helped build a more resilient business for the benefit of customers.”
He added:
“Brian’s tenure has helped make BinanceUS the powerhouse it is today. He took on the challenge of navigating a young company in a dynamic market and helped solidify our position as the leading crypto exchange in the US.”
CZ said Shroder will be replaced by Norman Reed, who brings a wealth of experience from his past roles at the SEC, New York Fed, Ripple and DTCC. This varied experience uniquely positions him to lead Binance.US through the current maze of regulatory challenges and a rapidly evolving marketplace.
Several top Binance.US executives, including its CEO and chief legal officer, have recently left the company. The company stated that this departure provides the platform with significant financial runway for continued operations.
Regulatory issues
The US Securities and Exchange Commission (SEC) recently accused Binance.US of non-cooperation in a lawsuit dated September 14. The SEC alleges that Binance.US’s holding company, BAM Holdings, submitted 220 documents, mostly unmarked screenshots, and failed to call key witnesses.
The crypto exchange is also said to have forwarded SEC queries regarding the custody of customer assets to an offshore custodian, Ceffu. It is unclear about Binance Entities’ role in asset management.
As a result, the SEC is seeking a court order to have Binance.US provide the necessary documents and is also asking for an extension of the discovery period by 14 days. Binance.US previously sought legal protection against the SEC’s requests, labeling them as “troubling and inappropriate.”
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