Binance CEO CZ Confirms Departure of Binance.US CEO as Company Faces Legal Challenges

In a statement issued on September 15, CZ urged everyone to disregard "FUD" (Fear, Uncertainty, Doubt) surrounding recent executive changes.

Binance CEO Changpeng “CZ” Zhao has addressed rumors and speculations regarding the departure of Binance.US CEO Brian Shroder, emphasizing that Shroder is taking a well-deserved break following his successful tenure at the company.

Binance.US, a subsidiary of Binance Holdings, has witnessed several high-level executives stepping down amid legal challenges from the U.S. Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC).

In a statement issued on September 15, CZ urged everyone to disregard “FUD” (Fear, Uncertainty, Doubt) surrounding recent executive changes.

He suggested that Shroder’s departure was amicable, and during his two-year tenure, Shroder had achieved the objectives he set out to accomplish when he joined the company.

CZ praised Shroder’s leadership, highlighting that under his guidance, Binance.US had successfully raised capital, enhanced its product and service offerings, streamlined internal processes, and significantly increased its market share.

These achievements contributed to building a more resilient company, benefiting customers and stakeholders alike.

Binance is currently facing lawsuits from both the SEC and CFTC, alleging multiple violations of securities and trading laws, including the sale of unregistered securities and mishandling of customer funds.

The SEC also accused Binance of unlawfully commingling funds between its U.S. and international branches.

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In response to these legal challenges, Binance.US announced on September 13 that it would be reducing its workforce by one-third, and Shroder would step down as CEO.

Subsequently, on September 14, two more executives, head of legal Krishna Juvvadi and chief risk officer Sidney Majalya, resigned from their positions.

These departures led to speculation that Binance might be facing more severe legal troubles than previously disclosed.

CZ alluded to the challenging regulatory landscape in his statement, noting that the cryptocurrency market has evolved significantly over the past two years, becoming increasingly hostile.

He expressed confidence in the new CEO of Binance.US, Norman Reed, asserting that Reed is the right person to lead the U.S. exchange in this new era.

Despite growing scrutiny and concerns about transparency and solvency, Binance remains the world’s largest cryptocurrency exchange by trading volume.

CZ has consistently dismissed claims of liquidity issues and maintains that the allegations against the company are unfounded.

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