- Binance is facing intense scrutiny in the wake of regulatory troubles.
- An alarming exit of key executives has heightened concerns about the firm’s operations.
- Binance CEO Changpeng “CZ” Zhao has refuted reports about these departures.
Binance, the world’s largest crypto exchange, is no stranger to controversy. The exchange’s reputation has not been helped by recent regulatory trouble in the United States, Europe, and Australia.
Recent concerns have been further heightened as on Thursday, July 6, Fortune reported that several key executives have opted to leave the firm over Chief Executive Officer Changpeng “CZ” Zhao‘s handling of investigations by the United States Department of Justice.
But Zhao has come out to push back against the report, particularly taking issue with the alleged reasons for reported departures.
Just a Turnover?
In a tweet on Thursday, July 7, the Binance CEO dismissed recent reports as “More FUD,” referencing the popular crypto slang for false reports designed to peddle fear, uncertainty, and doubt. While admitting to some departures, he asserted that the reasons alleged in the report were “completely wrong.”
Zhao argued that employee turnover was inevitable as the crypto space and personal situations evolved.
"We thank all of our ex-team members for their contributions to our growth, and wish them all the best. We also congratulate our team members who have grown into these new roles. They are all truly high caliber. We continue to BUILD, and continue to hire," he added.
While the Binance chief asserted in Twitter comments that only one executive was leaving the firm this week, at least two of the four executives reported leaving the firm have confirmed their departure in separate Twitter statements.
Confirming his exit from the firm, Chief Strategy Officer Patrick Hillman claimed he was leaving “on good terms.”
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"I've been here for two years and it's simply time for me to move on to the next challenge," he added.
Similarly, Senior Vice President Compliance Steven Christie stated that his reasons for resigning differed from what was reported. The former compliance chief asserted he was taking time for himself and his family.
Other executives reported to have resigned this week, like General Counsel Han Ng and Chief Business Officer Yibo Ling, could not be reached for comments at the time of writing.
The DOJ has reportedly been investigating Binance for over a year. Following the U.S. Securities and Exchange Commission case against the exchange, there has been increased speculation that the DOJ will bring criminal charges.
On the Flipside
- Binance is not the only crypto exchange that has been in U.S. regulators’ crosshairs in recent months. The SEC has also sued Coinbase, Kraken, and Gemini this year.
- Binance has hired a former DOJ prosecutor in its legal battle with the SEC.
Why This Matters
The departure of key Binance executives raises further questions about the company’s health in the wake of recent regulatory scrutiny.
Australian regulators recently searched Binance offices. Find out more:
Binance Australian Office Searched as Global Regulatory Walls Close In
Matrixport has released an ambitious price prediction for Bitcoin in 2024. Learn more:
