Bloomberg News reports that the largest crypto exchange, Binance Holdings Ltd’s founder, has been trying to defend the platform. And what is the reason for the same? This occurred following the exit of several executives that have helped the company to sail through a regulatory crisis that has been only widening.
Who has exited from Binance Holding Ltd?
As Changpeng “CZ” Zhao revealed in a tweet on Friday, they have been continuing to build and are still recruiting. This statement came after the compliance officer, general counsel, and chief strategy officer left Binance. This exit has given rise to questions related to the scenario at the exchange that is under investigation in the United States, the Asia Pacific, and Europe.
What is the present scenario at Binance?
Time and again, Zhao has had to answer queries related to the so-called “FUD,” as he calls it, namely, Fear, Uncertainty, and Doubt amidst a plunge in the share of Binance spot crypto trading volumes as the officials turn up the heat.
Binance has become the poster child for a drive wherein there has been a tightening of oversight in the digital asset segment following a $1.5 trillion rout in the previous year. It has been accompanied by the chain of bankruptcies, which also includes the competitor, FTX.
Binance’s chief strategy officer, Patrick Hillman, joined the company in 2021. He tweeted that he was exiting the company on good terms. Steven Christie, who was associated with the company as the senior vice president, along with the general counsel, Hon Ng, left, as revealed by the people aware of the issues.
Bloomberg News reports that now the new general counsel will be Eleanor Hughes, as stated by an individual who requested anonymity.
LinkedIn states that Binance hired as many as 600 employees. At the midyear review, several employees were asked to relocate. Yibo Ling, the chief business officer at Binance, according to people familiar with the matter.
Regulatory probe on Binance
The company is facing a series of regulatory probes. The SEC or the US Securities and Exchange Commission in the past month alleged that Zhao and the company have been misappropriating the funds of the customers. It also complained that Binance has been misguiding the investors and regulators. So they have been violating the securities laws and rules.
However, Binance considers the action of the SEC as “disappointing” and has said that it is trying to defend the platform. Aside from allegations by the SEC, Zhao and the company are also facing a lawsuit filed by the Commodity Futures Trading Commission. Bloomberg News reported earlier that the US Justice Department is investigating the company for the same.
