Is the FUD surrounding Binance just that – or are we on the verge of actual collapse this time?
Binance.US, the crypto giant has stuck its foot deep in the regulatory muddle and the constant pressure is shaking its walls. Following the shocking departure of CEO Brian Shroder, two more key heads have exited the company. Krishna Juvvadi, who served as the Head of Legal, and Sidney Majalya, the Chief Risk Officer, have both bid farewell to the exchange as reported by WSJ.
Can the crypto markets bear one more collapse? Well, read on. This might shock you!
According to the Wall Street Journal report, this wave of departures comes on the heels of Binance.US’s strategic move to reduce its workforce by a striking one-third. This substantial downsizing underscores the challenges the exchange is grappling with as it navigates a regulatory landscape that is becoming increasingly stringent.
Legal Battles Don’t Stop
Binance.US is facing constant challenges in the United States, including legal actions by both the SEC and the Commodity Futures Trading Commission. Mostly these actions are a mix of various allegations, such as running an illegal exchange, selling unregistered securities, breaking commodities laws, and mishandling customer funds. These legal issues have emerged amid mounting regulatory pressures, with a significant SEC lawsuit filed in June, accusing Binance of securities law violations.
This is indeed a turbulent year for Binance has key departure of several other high-ranking executives, including Global Product Lead Mayur Kamat, Chief Strategy Officer Patrick Hillmann, Senior Director of Investigations Matthew Price, and Senior Vice President for Compliance Steven Christie. Their exits reflect a broader trend of senior figures leaving Binance in response to the mounting regulatory pressures.
In response to these challenges, Binance.US has resorted to a multi-pronged strategy. This includes significant layoffs and the sale of co-founder Changpeng Zhao’s (CZ) shares. These measures are aimed at fortifying the company’s sustainability over the next five years. However, on the recent resignations of the legal head, they are yet to comment.
Read Here: Is Binance in Trouble? CZ Says No, Highlights Recent Accomplishments
If Binance were to shut down, it could lead to a severe impact on the cryptocurrency market. Prices of bitcoin and other cryptocurrencies might sharply decrease. Binance plays a big role in global crypto trading, so its closure would disrupt trading and lead to a rush of selling, causing market panic. This situation is often referred to as a “supply shock.”
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