Continued Mass Departures: Two Additional Executives Exit Binance.US
Mitchell Nixon
Binance.US witnesses departures of two more high-ranking executives amid regulatory scrutiny.
Krishna Juvvadi, Head of Legal, and Sidney Majalya, Chief Risk Officer, are leaving Binance.US, according to sources cited by the Wall Street Journal. These departures come shortly after the resignation of CEO Brian Shroder, as regulatory pressure intensifies.
Krishna Juvvadi joined the company in May of the previous year, while Sidney Majalya assumed the role in December 2021.
Despite the ongoing staffing changes, Binance.US remains operational, albeit with certain service limitations. Due to regulatory challenges, the company suspended U.S. dollar support and transitioned to a crypto-only exchange in August.
These recent departures follow a series of resignations within Binance’s parent company, Binance. In 2023, at least ten global Binance executives have left their positions, including key figures like General Counsel Han Ng, Chief Strategy Officer Patrick Hillmann, and SVP for Compliance Steven Christie. Others who have departed include Steve Milton, Matthew Price, Leon Foong, Mayur Kamat, Vladimir Smerkis, Gleb Kostarev, and Helen Hai.
Notably, these departures occurred after the U.S. Securities and Exchange Commission (SEC) filed charges against both Binance and Binance.US in June. Some of these vacant roles have been filled by new hires.
It is worth mentioning that Binance has not formally announced these staff departures, with news outlets and the executives themselves being the primary sources of such information. The company, led by CEO Changpeng Zhao, has consistently denied any links between these departures and regulatory issues or internal conflicts.
Recent developments also suggest potential legal challenges. The SEC filed sealed documents in the U.S. District Court for the District of Columbia on August 28, leading to speculation about a possible Department of Justice criminal probe into Binance. Bloomberg previously reported in May about an ongoing Justice Department investigation into the company.
Binance.US has responded to the SEC’s legal actions by requesting a protective order against the agency in August and labelling SEC requests in a compel and reply motion as “unreasonable” and “unduly burdensome” on September 12.
Additionally, the Commodity Futures Trading Commission initiated a lawsuit against Binance in March, alleging violations of trading and derivatives rules. Throughout this year, Binance has experienced executive departures and workforce reductions.
Binance is facing somewhat concerning circumstances, typically signalling potential regulatory challenges when numerous senior officials depart the company.
Nevertheless, it’s important to highlight that many of these departures are associated with Binance’s U.S. division, not its international one. The U.S. arm is notably smaller than its global counterpart and currently operates with significant limitations on its services. Therefore, it’s unsurprising to witness a substantial staff turnover in response to these constraints.