Binance.US Cuts Third of Workforce as CEO Departs

The head of Binance.US has reportedly left the cryptocurrency company.

Brian Shroder, who had been the exchange’s CEO since 2021, has resigned, the Wall Street Journal (WSJ) reported late Tuesday (Sept. 12). Taking his place will be Norman Reed, chief legal officer of the firm, which is the American arm of the embattled crypto giant Binance.

A company spokesperson confirmed Shroder’s departure when reached for comment by PYMNTS, as well as reports that the company was laying off more than 100 workers, or roughly a third of its staff, the latest shake-up involving Binance amid its ongoing battle with the U.S. Securities and Exchange Commission (SEC).

“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,” the spokesperson said. “The SEC’s aggressive attempts to cripple our industry and the resulting impacts on our business have real-world consequences for American jobs and innovation, and this is an unfortunate example of that.”

The company had reportedly laid off another 50 workers in June, less than two weeks after the SEC accused parent company Binance of securities law violations and tried to freeze Binance.US’s assets.

The two companies maintain they are separate entities, although a report by the WSJ earlier this year said that internal messages and interviews show Binance essentially created its American arm as a shield from financial regulators. 

The report also said the two companies are more connected than they had let on, mixing finances and staff.

A company spokesperson told PYMNTS in March that agreement between Binance and its U.S. operation is common in their industry, with Binance’s founders licensing its tech stack to other organizations that weren’t connected to the company.

“That is why you’re seeing these old communications between members of the two organizations,” the spokesperson said.

“Additionally, it’s important to note that Binance.com and Binance.US shared the same ultimate beneficial owner which has been public knowledge since inception,” the spokesperson added. 

Binance has also undergone a recent string of executive departures, including last week’s announcement that head of product Mayur Kamat had stepped down. Binance CEO Changpeng Zhao has said this turnover is not tied to the regulatory pressures facing his company.

The exchange’s ongoing woes — including the recent shutdown of the Binance Connect platform — are a symbol of what PYMNTS last month called the ongoing “identity crisis” facing the cryptocurrency industry.

“Zhao has repeatedly dismissed his enterprise’s ongoing legal woes as ‘FUD,’ or fear, uncertainty and doubt, even going so far as to tweet the number 4 in reference to what he sees as unnecessary FUD,” that report said. “For an industry whose early and rapid growth was aided by a haze of regulatory uncertainty, crypto’s future — particularly within the U.S. — remains unclear as the newness wears off.”