Key Points:
Key executives at Binance.US, including the head of legal and chief risk officer, are resigning amid increasing regulatory pressure. The SEC has been actively pursuing legal action against Binance, accusing the company of operating an illegal trading platform within the US.
Binances U.S. affiliate is witnessing a series of executive departures and has announced plans to cut more than 100 jobs.
Risk and legal executives at Binance‘s U.S. affiliate are stepping down amidst increasing regulatory pressures, as reported by the Wall Street Journal. These departures come hot on the heels of Binance.US CEO Brian Shroder’s exit earlier this week, raised questions about the crypto giants stability.
Krishna Juvvadi, who served as the head of legal, and Sidney Majalya, the chief risk officer, are among those departing. Juvvadi, who joined the company in May 2022, played a crucial role as one of Binance.US primary contacts in communication with the Securities and Exchange Commission (SEC). Majalya assumed the role of Chief Risk Officer in December 2021.
The SEC has been at the forefront of regulatory actions against Binance, its founder Changpeng Zhao, and Binance.US, accusing them of operating an illegal trading platform in the United States. The SECs lawsuit, filed in June, alleges multiple violations, including functioning as an unregistered exchange.
These moves are said to be a response to the SECs moves, which are having a ripple effect on American jobs and innovation. However, neither Juvvadi nor Majalya commented on their departures.
Binance has witnessed a series of executive exits, including that of its global head of product, Mayur Kamat, in early September and its chief strategy officer, Patrick Hillmann, in July. The company also recently announced plans to cut over 100 jobs, representing approximately one-third of its workforce, as it navigates the evolving regulatory landscape.