- Binance US announced that it would lay off one-third of its employees,
- Ongoing litigation battles with the SEC add to Binance’s challenges.
Binance [BNB], one of the world’s largest cryptocurrency exchanges, faced another setback as its US CEO, Brian Shroder, resigned from his position. Shroder, who joined the company in September 2021, left at a time of uncertainty for Binance US.
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The US branch has also announced that it would lay off one-third of its employees. This marks the second round of job cuts at the exchange.
Everyone’s leaving the party
Shroder’s departure raised concerns about the exchange’s stability and leadership. The resignation of a high-profile executive like Shroder could negatively impact Binance’s reputation.
Regarding the layoffs, Binance stated that they were necessary to ensure the long-term viability of the company in the face of regulatory pressure. The exchange mentioned that these actions would provide Binance with more than seven years of financial stability, allowing it to continue serving customers as a crypto-only exchange.
They also criticized the US Securities and Exchange Commission (SEC) for its aggressive stance, emphasizing the real-world consequences on American jobs and innovation.
Sentiment begins to decline
In the wake of Shroder’s resignation and the layoffs at Binance.US, negative sentiment around the exchange has soared. Users and investors are growing increasingly concerned about the exchange’s future and its ability to navigate the complex regulatory landscape in the United States.
The US arm’s trading volumes have also taken a hit, with monthly volumes plummeting from $10.58 billion in January to just $70 million in September. This significant drop in trading activity raises questions about Binance’s ability to maintain its market position and attract new users.
Litigation battles continue
Furthermore, ongoing litigation battles with the SEC pose a significant challenge for Binance. In a recent filing, Binance criticized the SEC’s requests for more information as “unreasonable” and “burdensome.”
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The exchange’s legal team filed papers opposing the SEC’s motion for additional depositions, arguing that the SEC’s demands exceeded the scope of the consent order.
The escalating legal disputes with regulatory authorities could further hinder its operations and reputation. Investors and users are closely watching these developments, and the outcome of these legal battles could seriously impact the exchange’s trajectory in the coming months.