Binance US’s share of the global market has shrunk from around 2.39% in April to around 0.6%
Binance US Chief Executive Officer Brian Shroder has left the crypto trading platform and has been replaced on an interim basis by Chief Legal Officer Norman Reed, a company spokesperson said.
The departures come as the company controlled by embattled digital entrepreneur Changpeng “CZ” Zhao is cutting about a third of its workforce, or more than 100 positions, as a regulatory crackdown erodes its business. The exchange, which is formally BAM Trading Services Inc. is called, started in 2019 for American users, who are not allowed to use Binance Holdings.
It is the second round of job cuts this year at the Miami-based company as it faces a series of mounting legal and operational challenges. In June, the U.S. Securities and Exchange Commission accused Binance Holdings, Zhao and Binance.US of mishandling customer funds, misleading investors and regulators and violating securities regulations. Zhao and the companies have denied the allegations.
In March, the U.S. Commodity Futures Trading Commission charged Binance and Zhao with “intentional evasion of federal law.” The Department of Justice is also investigating Binance; it has not accused the company of any wrongdoing.
Shortly after the SEC action, Binance.US customers were no longer able to deposit or withdraw dollars, a result of multiple banking partners cutting ties with the platform. The company has had to resort to an alternative method for Binance US users to convert dollars into crypto.
According to Jacob Joseph, an analyst at researcher CCData, Binance US’s share of the global market has shrunk from about 2.39% in April to about 0.6% in April. Monthly trading volume has fallen below early 2020 levels, he said.
“The actions we are taking today provide Binance.US with more than seven years of financial runway and allow us to continue serving our customers while operating as a crypto-only exchange,” a spokesperson said in a statement. “The SEC’s aggressive efforts to cripple our industry and the resulting impact on our business have real consequences for American jobs and innovation, and this is an unfortunate example of that.”
Binance.US has laid off an unspecified number of employees following the SEC’s action, Bloomberg reported in June.
Binance Holdings has also fired executives and other employees in recent months. This month, two executives overseeing regions including Eastern Europe and Russia left. In August, Binance lost the head of its Asia Pacific business and a slew of executives, including its chief strategy officer, in July.
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