Exit of executives deepens fears about exchange shutdown

The problems of Binance.US, Binance’s US subsidiary, continue to intensify. This week, Krishna Juvvadi, head of legal, and Sidney Majalya, chief risk officer, key business executives, left the company, as reported by The Wall Street Journal.

The two firings came less than two days after the company’s CEO, Brian Shroder, stepped down and the exchange laid off a third of its staff.

The exits come after Binance.US was the target of several legal actions brought by two US regulators, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Faced with the apparent “stampede”, experts are warning of a possible “collapse” of Binance’s US unit, which could supposedly be forced to close its doors.

Bloomberg Intelligence analyst James Seyffart, for example, these that the exchange is already “dead”. Meanwhile, Zero Knowledge Consulting founder Austin Campbell stated:

“It seems relatively obvious that Binance.US will be shut down, unfortunately,” he wrote him on X (formerly Twitter).

It is worth noting that the international exchange Binance is also going through an executive departure process, with around ten senior executives leaving in the last two months.

Binance.US loses key executives

Since being the target of an SEC lawsuit, Binance.US has been facing problems. The exchange scaled back operations and had to suspend fiat deposit and withdrawal services as banking partners walked away.

In this way, Binance.US lost an important part of its moved volumes and saw its market share drop sharply. Now he sees his executives leaving.

“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,” a spokesperson told The Block about the Schroder’s departure.

According to data from The Block, Binance.US’s monthly trading volume in 2023 plummeted from a March high of $17.63 billion to $290.42 million in August. Furthermore, in June 2023, analytics firm Kaiko revealed that Binance.US’s share of the US market had fallen to less than 1%, down from more than 22% in April.