Zhao claims Brian Shroder "accomplished what he set out to do when he joined two years ago."
Changpeng "CZ" Zhao, the crypto exchange Binance CEO, has publicly addressed the recent departure of Brian Shroder, the CEO of its partner company, Binance.US. As legal challenges continue to loom for the company, CZ assured that Shroder is simply "taking a well-deserved break."
Amid legal scrutiny, Binance.US has been undergoing a series of executive changes. Binance.US announced a workforce reduction by a third on September 13th and declared Shroder's departure the same day.
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One day later, two more top executives — Krishna Juvvadi, head of legal, and Sidney Majalya, chief risk officer — resigned from the firm.
The exit of Binance.US top executives has fueled speculation, especially given that Binance and its partner company face lawsuits from the US Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC). The legal allegations include the mishandling of customer funds and selling unregistered securities.
The string of exits stirred online discussions, forcing many to wonder if the firm's legal troubles are more severe than initially thought.
In a recent post on the social media platform X, CZ encouraged the public to "ignore FUD," affirming that Shroder departed the company on good terms.
According to CZ's statement, under Shroder's leadership, the US branch achieved significant milestones, including raising capital, expanding its product offerings, and gaining market share.
Zhao believes that all of these developments made Binance.US a more robust entity. CZ praised Shroder for accomplishing what he "set out to do when he joined two years ago."
In a somewhat veiled reference to ongoing legal issues, CZ also mentioned the current regulatory environment for crypto companies, describing it as "increasingly hostile." As a countermeasure, he revealed that the newly-appointed CEO of Binance.US, Norman Reed, is well-suited to navigate the company through these turbulent waters.
Previously, CZ dismissed criticisms about Binance's financial stability, which have been mounting since the bankruptcy of the crypto exchange FTX. He insisted that Binance faces "no liquidity issues," dismissing claims to the contrary as baseless.
As Binance grapples with leadership changes and a complicated legal landscape, the statements from its CEO aim to instill confidence. With the appointment of Norman Reed as the new CEO of its US subsidiary, Binance hopes to turn a new page in its relationship with American regulators and customers.
