Blockchain & Crypto

Binance Faces Executive Exodus as DOJ Investigation Looms

The media reported that several Binance executives decided to resign due to concerns related to a possible investigation by the US Department of Justice.

Binance Faces Executive Exodus as DOJ Investigation Looms

The chief legal adviser of the cryptocurrency giant, the head of the investigations department, and the director of the strategy are among the employees who decided to quit. This information was reported by the media concerning the data contained in court documents.

It is also known that several dozen Binance employees were fired in July. This decision was made as part of the company’s efforts to reduce the number of workers in the United States.

The founder of Binance, Changpeng Zhao, said on his Twitter page that dismissals as part of the company’s tactical concept and resigning from executive positions are not evidence of total disorder in the crypto exchange. He stated that staff turnover should be characterized and perceived as a natural process against the background of changes in the markets and the global cryptography environment. Also, according to him, the personnel issue escalates with the development of organizations and due to certain personal situations.

Patrick Hillman, the company’s director of strategy, posted a message on his Twitter page partly confirming the statements of the founder of Binance. He stated that had decided to resign from his position because a new child would soon appear in his family. Patrick Hillman also said that he was quitting on good terms and noted that he continues to respect and support Changpeng Zhao.

Regulatory compliance officer Steven Christie also commented on Twitter on his resignation from the position. He stated that this decision is based on his wife’s desire to spend more time at home.

But official explanations of certain events and processes are not always true or contain a full explanation. The media reports that for those who decided to quit, possible charges against the founder of the cryptocurrency exchange service by the US Department of Justice have become a key factor. They fear that the crypto exchange, which is already involved in lawsuits filed by American regulators, will find itself in a more difficult situation with unclear prospects for the subsequent development of events.

One of the former Binance employees, on the rights of anonymity, told the media that many people who continue to work in this company believe that Changpeng Zhao while maintaining control over the cryptocurrency exchange service, puts the company at risk.

For the first time, the investigation by the US Department of Justice of operations of crypto-exchange in the public space began to be talked about last year. Representatives of the company then declined to comment on this.

Last month, the U.S. Securities and Exchange Commission (SEC) sued Binance over alleged violations of securities laws. This authority has brought 13 charges and stated the involvement of the company and its founder in the practice of deception, conflict of interest, non-disclosure of information, and deliberate disregard of legislative norms.

In its public response to the lawsuit, Binance stated that the commission applies a method of rough legal impact and uses the concept of initiating litigation instead of a thoughtful approach that takes into account all the nuances and aspects of the activity. The company claims that in-depth analysis is preferable in this case because of the dynamic and complex technological component of the business. The crypto exchange also stated that the commission’s actions undermine the status of the United States as a global center for financial innovation.

Binance, amid pressure from regulators, stated its intention to defend its platform and operational activities in an American court.

The commission’s case against Binance and the regulator’s lawsuit against Coinbase is evidence of increased efforts to increase the degree of control of the crypto industry. Gary Gensler, the head of the SEC, is convinced that after a year of fraudulent evaporations and catastrophic bankruptcies in the field of cryptocurrencies, increasing attention and creating a certain pressure are appropriate and justified actions.

As we have reported earlier, Westpac Bans Transfers to Binance.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.