Brian Shroder, the Chief Executive Officer of Binance US, has resigned from his position amidst ongoing regulatory scrutiny and a wave of job cuts at the cryptocurrency exchange. Shroder’s departure comes two years after he took the helm of the American subsidiary of the world’s largest cryptocurrency exchange, known for its significant daily trading volume.
Binance US Implements Job Cuts
In addition to Shroder’s resignation, Binance US is undergoing a significant reduction in its workforce, eliminating over 100 positions, which amounts to roughly one-third of its employees. This downsizing is occurring in response to mounting regulatory pressures that have impacted the exchange’s operations, leading to a notable decline in its monthly trading volume, which has fallen below early 2020 levels.
Binance US’s market share dwindled to 1.5% in June, as reported by digital asset market data provider Kaiko, and currently stands at approximately 0.6%, down from 2.39% in April of the same year, according to Jacob Joseph, an analyst at researcher Ccdata.
This marks the second round of job cuts at Binance’s cryptocurrency trading platform for U.S. users, which was launched in 2019 and is operated by BAM Trading Services. A spokesperson for the company stated, “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 also pointed to the U.S. Securities and Exchange Commission’s (SEC) aggressive efforts to regulate the cryptocurrency industry, which have had tangible effects on American jobs and innovation. In June, the SEC took legal action against Binance, its founder Changpeng Zhao (CZ), and its U.S. subsidiary, alleging mishandling of customer funds, misleading investors and regulators, and violations of securities regulations.
Prior to this, in March, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and CZ, accusing them of “willful evasion of federal law,” while the Department of Justice initiated an investigation into the exchange for potential sanctions evasion related to Russia. Binance and CZ have consistently denied these allegations, accusing U.S. authorities of employing “regulation by enforcement” tactics.
Shroder’s departure is part of a broader trend of executive exits from Binance over the past few months, including the Chief Strategy Officer, Senior Vice President for Compliance, General Counsel, and Product Lead. Additionally, Binance’s managers for Eastern Europe and Russia have recently left the company. Earlier this year, the exchange reportedly laid off over 1,000 employees.
These developments underscore the challenges and regulatory pressures that cryptocurrency exchanges, particularly those operating in the United States, currently face as the industry navigates evolving regulatory frameworks and enforcement actions.