Binance US Loses Key Executives as Regulatory Issues Intensify – Here's the Latest
Binance US, the American subsidiary of the well-known cryptocurrency exchange, is experiencing a series of high-profile departures.
Today, Sidney Majalya, the Chief Risk Officer, and Krishna Juvvadi, the head of legal, resigned according to a report by Wall Street Journal. Their exits followed the recent resignation of Brian Shroder, the firm's President and CEO.
These departures add weight to speculations about a potential ripple effect of high-level exits at the firm.
Both departures come amid increasing scrutiny from the U.S. Securities and Exchange Commission (SEC). The SEC filed a lawsuit against Binance US and its CEO earlier this year, accusing the company of running an unauthorized trading platform in the United States.
Juvvadi was one of the main liaisons between Binance US and the SEC and joined the company in May 2022. Majalya took on the role of CRO in December 2021.
Binance US commented on the departures, stating, "The SEC's aggressive attempts to cripple our industry and the resulting impacts on our business have real-world consequences for American jobs and innovation, and this is an unfortunate example of that."
As of the time this article was published, neither Juvvadi nor Majalya have made public statements about their reasons for leaving Binance US.
Binance and its U.S. subsidiary, along with co-founder Changpeng "CZ" Zhao, are facing legal action from regulatory bodies such as the SEC and the Commodity Futures Trading Commission (CFTC). The allegations range from operating without proper authorization to offering unregistered securities and violating commodities laws. Due to these challenges, Binance US temporarily halted all dollar withdrawals and deposits on June 9.
Internationally, Binance is also under
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