Binance senior executives resign over CZ’s handling of investigations
Binance is currently facing the heat as its top executives have stepped down from their position amid its CEO's handling of the DOJ investigation.
cryptocurrency
Highlights
- Some of the senior executives of the exchange have chosen to step down from their position
- CZ's response to an ongoing investigation by the Department of Justice is cited as the chief reason behind the move
Binance, one of the leading crypto exchanges across the globe, is facing a major crisis after its senior executives resigned over CEO Changpeng Zhao’s handling of the Department of Justice (DOJ) investigations.
Some of the top management, including Steven Christie, SVP for compliance, and Patrick Hillmann, general counsel Hon Ng, chief strategy officer have intimated CZ regarding their departure from the company.
Top management wary of Binance’s handling of alleged allegations
Insiders opine that the senior executives chose to step down from their position owing to Zhao's response to an ongoing investigation by the Department of Justice. The move showcases a management and strategic crisis for Binance, at a time when the exchange has been under immense regulatory pressure, facing investigations into alleged money laundering, violating sanctions and attempting to dodge sanctions violations, and attempts to deceive U.S. regulators.
Interestingly, following the above-mentioned move, CZ announced that the new general counsel had been promoted by the exchange a month ago and Hillman sought resignation from the company owing to personal reasons. It must be mentioned that the latest exit of Matthew Price, a former IRS agent hired by Binance to oversee global investigations and intelligence.
The CEO took to Twitter and posted:
4. More FUD about some departures. Yes, there is turnover (at every company). But the reasons dreamed up by the “news” are completely wrong.
— CZ 🔶 Binance (@cz_binance) July 6, 2023
As an organization that has grown from 30 to 8000 people in 6 years, from 0 to the world’s largest crypto exchange in less than 5 months…
Binance in the middle of numerous lawsuits
It must be noted that the said move would dampen the exchange’s ability to navigate the intense regulatory scrutiny it is currently facing.
The crypto exchange is already facing lawsuits from the SEC, i.e., the Securities and Exchange Commission, and the CFTC, i.e., the Commodity Futures Trading Commission. Moreover, another regulatory agency, i.e., the DOJ may soon file a criminal complaint against both the company and Zhao, opine experts.
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