In an ongoing regulatory clampdown, cryptocurrency exchange Binance is witnessing several executive departures, which its founder, Changpeng Zhao (CZ), dismisses as “more FUD” – a popular acronym in the cryptocurrency space representing ‘fear, uncertainty, and doubt.’
Binance Executives Depart Amid Regulatory Turmoil
Changpeng Zhao, the Chief Executive of the world’s largest crypto exchange, defended the recent executive departures in a tweet, referring to them as “more FUD”. The tweet was a response to the news of the departure of several senior members from the organization. He also emphasized the exponential growth of Binance over the past few years and reassured that the firm is continually recruiting new talent.
Chief Strategy Officer Patrick Hillmann confirmed via Twitter that he will be leaving Binance “on good terms” two years after he joined the organization. Bloomberg, citing an informed source, revealed the departures of Steven Christie, Senior Vice President for Compliance, and Hon Ng, Binance’s General Counsel.
The executive exits coincide with an escalating regulatory backlash against Binance, with ongoing investigations and lawsuits from jurisdictions including the United States, France, Belgium, among others, over accusations of securities law violations and alleged money laundering practices. Australian authorities were reported to have conducted searches at Binance Australia locations earlier this week.
US Market Share Suffers Amid Legal Disputes
In the United States, Binance is entangled in legal disputes with the country’s securities and futures commissions. Consequently, Binance’s US subsidiary’s market share plummeted to a meagre 1.5%, in spite of a deal aimed at circumventing an asset freeze. Ccdata reports a continuing trend of decline in Binance’s non-derivatives trading volume share for the fourth consecutive month as of June, experiencing a 1.4% drop to 42%.
According to Bloomberg citing LinkedIn records, nearly 600 employees were working for Binance in the United States. In June, some of these employees were questioned about their willingness to relocate, and those who refused were let go, as per the report. Yibo Ling, Chief Business Officer, was reportedly among those who departed, as per Bloomberg’s unnamed source.
In late May, in response to speculation and reports of widespread layoffs at Binance which suggested that up to one-fifth of the exchange’s workforce might be made redundant due to adverse market conditions, Changpeng Zhao tweeted, “Another day, another FUD.” On Friday, Zhao emphasized that his organization has expanded from a team of 30 to 8,000 over the span of six years, acknowledging the inevitable employee turnover in any company.