Top Binance Executives Resign as Regulatory Battles Heat Up

Binance, the renowned cryptocurrency exchange, is currently grappling with a wave of turmoil as key executives step down this week due to concerns over CEO Changpeng Zhao’s handling of regulatory investigations.

The departures come at a crucial time for Binance, which has been under intense scrutiny and has experienced severed banking relationships globally due to mounting regulatory pressure.

A Downward Spiral

According to reliable sources, several senior figures within Binance, including general counsel Hon Ng, chief strategy officer Patrick Hillmann, and SVP for Compliance Steven Christie, have communicated their decision to depart from the company. These resignations follow the recent departure of Matthew Price, a former IRS agent hired by Binance to oversee global investigations and intelligence.

Also Read: Regulatory Turmoil Sends Binance.US Plummeting

The resignations of these key personnel are particularly significant for Binance, as they stem from the legal and compliance units, which directly interact with regulators. This exodus of talent may further hamper the exchange’s ability to navigate the intense regulatory scrutiny it is currently facing.

Binance Remains Silent

Binance has not yet responded to requests for comment regarding the recent departures. However, in a message to Fortune, Zhao acknowledged that a new general counsel was promoted a month ago, and Chief Compliance Officer Noah Perlman will continue in his role. Zhao also clarified that Hillmann’s departure was due to personal reasons.

Insiders familiar with the situation reveal that the executives chose to resign due to Zhao’s response to an ongoing investigation by the Department of Justice. Reports indicate that the investigation, which has been ongoing for over a year, focuses on alleged attempts by Binance to deceive U.S. regulators, as well as potential money laundering and sanctions violations on the platform.

Here’s Some Context: Will DOJ File Criminal Charges Against Binance And Changpeng Zhao ?

Mounting Pressure for Binance

Binance is already facing significant regulatory lawsuits from the Securities and Exchange Commission and the Commodity Futures Trading Commission. Speculation suggests that the Justice Department may soon file a criminal complaint against both the company and Zhao.

The multiple investigations in the United States, along with scrutiny from authorities in Europe, Australia, and other regions, have sparked rumors of Zhao potentially stepping aside to help Binance weather the regulatory storm. Reports in June highlighted Richard Teng, a promising Binance executive, as a possible successor to Zhao. However, Zhao has not indicated any intention of relinquishing his position.

What next?

In recent months, its market share has faced a decline, likely influenced by regulatory pressures and the decision of banks in the United States, Europe, and other regions to sever ties with the company, limiting its access to fiat currency.

However, despite the ongoing challenges, Binance remains the largest cryptocurrency exchange globally. It all boils down to if and how well can they emerge from this crisis.