Just days after the exit of Binance.US CEO Brian Shroder, the cryptocurrency exchange endures another significant shake-up in its leadership. Krishna Juvvadi, Head of Legal, and Sidney Majalya, Chief Risk Officer, are stepping away from their roles. Besides bringing in Juvvadi’s legal acumen, the exchange benefited from Majalya’s compliance insights honed at Intel. This wave of departures is not isolated since it follows a sweeping layoff that saw a third of the company’s workforce let go.
Mounting Regulatory Pressure on Binance.US
Binance.US is grappling with increased scrutiny from the U.S. Securities and Exchange Commission (SEC). Consequently, this focus from regulators is affecting its executive suite. Significantly, a lawsuit filed in June by the SEC targets Binance and its CEO, Changpeng Zhao, alleging multiple violations, including functioning as an unregistered exchange. This legal action amplifies the concerns raised by other U.S. regulatory bodies like the CFTC.
In a statement, a company spokesperson pointed to the SEC’s “aggressive moves” as having a ripple effect on American jobs and innovation. Moreover, neither Juvvadi nor Majalya have broken their silence about leaving, offering no comments to inquiries from the Wall Street Journal.
These changes also come from earlier departures of key executives like Global Product Lead Mayur Kamat and Chief Strategy Officer Patrick Hillmann.
The present turmoil places Binance.US at a critical juncture. Hence, the upcoming months are pivotal for the exchange and the broader cryptocurrency industry keenly observing these developments. The evolving landscape is fraught with both internal and external challenges for Binance. U.S. Moreover, the exits of top legal and risk officers underscore the severity of its current predicament.
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