Binance founder Changpeng Zhao (CZ) attempted to downplay the significance of the exits of some executives at the crypto exchange, describing news about them as "more FUD" (fear, uncertainty and doubt). The executives are leaving amid an ongoing regulatory crackdown on the major coin trading platform that has impacted its market share. CZ Comments on Executives Leaving Binance Amid Regulatory Crisis Changpeng Zhao, founder and CEO of the world's largest cryptocurrency exchange, defended his company in the face of what he called "more FUD about some departures." In a tweet published after it became clear that several executives were leaving, CZ highlighted the crypto firm's significant growth over several years and assured that it would continue hiring.
On Thursday, Chief Strategy Officer Patrick Hillmann confirmed on Twitter that he was leaving Binance "on good terms," two years after joining the company. Citing a knowledgeable source, Bloomberg reported that Senior Vice President of Compliance Steven Christie and Binance's general counsel Hon Ng also left.
The departures come at a time when the exchange finds itself under increasing regulatory pressure, with investigations and lawsuits against it in the United States, France, Belgium and other jurisdictions, including for alleged violations of securities laws and money laundering. Australian authorities reportedly searched Binance Australia locations earlier this week. In the US, Binance is engaged in legal battles with the country's securities and futures commissions. As a result, despite an agreement that helped avoid an asset freeze, the American subsidiary's market share fell significantly to just 1.5%. Binance's share of non-derivative trading volume fell for the fourth consecutive month in June, dropping 1.4% to 42%, according to Ccdata.
Citing Linkedin records, Bloomberg noted that approximately 600 employees work for Binance in the United States. In June, some were asked if they would relocate, and some who refused were fired, according to the report. Chief Operating Officer Yibo Ling was among them, according to Bloomberg's unidentified source. At the end of May, Changpeng Zhao reacted to rumors and reports of mass layoffs at Binance, claiming that a fifth of the exchange's workforce may be forced to leave due to poor market conditions. “Another day, another FUD,” CZ tweeted at the time. The crypto entrepreneur acknowledged Friday that "there is turnover (in every company)," noting that his organization has grown from 30 to 8,000 people in 6 years.