- Binance grapples with executive resignations amid DOJ scrutiny.
- Despite that, Binance’s CEO claims that pressure only strengthens the team.
- The DOJ probe is the latest among legal and regulatory pressures on Binance.
Recent reports suggested that Binance is facing internal strife due to mounting issues with regulators. Amid an ongoing Department of Justice (DOJ) investigation, several top executives have chosen to step down. These resignations come when Binance is reportedly laying off dozens of staffers.
Latest staffing issues raise questions about the company’s ability to navigate the increasing regulatory scrutiny it faces. Still, Binance CEO Changpeng “CZ” Zhao claims the mounting external pressure is just strengthening the company’s team.
CZ: We Have Always Had External Pressure
On Monday, July 10, CZ took to Twitter to reassure the public that Binance’s team is strong. He claims that constant external pressure on the company made its team work together.
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To explain his position, CZ drew parallels with aliens attacking Earth. In that situation, “all the issues between the US and China would disappear in a heartbeat.”
“We have always had external pressure, FUD, etc,” CZ asserted, referring to, among other things, lawsuits by US agencies against the exchange. “As a result, we are constantly in the trenches together.”
Binance has been under strain for months amid an onslaught of regulatory investigations that have severed many of its key banking relationships across the globe. The ongoing DOJ investigation reportedly relates to money laundering and US sanctions violations on Binance.
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Binance is also a target of lawsuits by top US financial regulators. In particular, the Securities and Exchange Commission and the Commodity Futures Trading Commission filed lawsuits against the exchange. The exchange also faces increasing regulatory scrutiny in Europe.
CZ’s remarks about team building came after reports that Binance is facing mounting internal strife, including high-profile resignations and reports of layoffs.
Binance’s Leadership Crisis Amid DOJ Investigation
On Thursday, July 6, Binance plunged into apparent turmoil as key executives resigned. These included General Counsel Hon Ng, Chief Strategy Officer Patrick Hillmann, and SVP for Compliance Steven Christie.
Reports by Fortune suggested that the resignations were over disagreements with CEO Changpeng Zhao’s handling of the ongoing DOJ investigations. On the other hand, Wall Street Journal reported that Binance had laid off dozens of staffers in the US.
However, Binance executives denied these allegations. Patrick Hillmann, Chief Strategy Officer at Binance, claimed he is leaving “on good terms” for personal reasons.
A compliance executive, Steven Christie also explained that his reasons differed from what was reported. He claimed he was “tired” and needed to “lose some weight.”
Binance’s CEO also dismissed these allegations of internal strife. He claimed they were just natural turnover for a company that employs thousands.
On the Flipside
- Due to mounting regulatory pressure, Binance is losing key banking partners in Europe and the US.
- Binance remains by far the biggest cryptocurrency exchange in the world, but in recent months its market share has started to slide.
Why This Matters
The ongoing issues at Binance have significant implications for crypto traders, many of whom use Binance’s platform or hold BNB.
Read more about CZ addressing a recent wave of resignations:
Binance CEO CZ Spins Alarming Exit of Key Execs: “More FUD”
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