Binance.US, the U.S.-based subsidiary of Binance, has cut more than 100 staff positions, or a third of its workforce, in the second round of job cuts this year.
According to Bloomberg, which first reported the news, the staff cuts come along with the departure of the exchange’s CEO Brian Shroder, who joined the firm in September 2021. Shroder’s role will be assumed by Chief Legal Officer Norman Reed, who will serve as the interim chief.
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Binance.US, alleging that the exchange misused customer funds. However, lawyers for the crypto exchange argued that the regulator has repeatedly acknowledged that it has no evidence to support its argument.
Meanwhile, the U.S. Commodities and Futures Trading Commission (CFTC) has sued its parent company Binance, alleging that the firm and its CEO Changpeng Zhao violated U.S. securities laws.
While trading volume on Binance has remained strong, the same can’t be said for its U.S.-based subsidiary, that has lost considerable market share since the lawsuits were first announced.
Several banking companies have also cut ties with the exchange since then, disrupting deposits and withdrawals on the platform for periods of time.
“The actions we are taking today provide Binance.US with more than seven years of financial runway and enable us to continue to serve our customers while we operate as a crypto-only exchange,” said a spokesperson for Binance.US to Bloomberg.
“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,” the spokesperson added.