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With increasing regulatory pressure, Binance has been in the spotlight for months due to having to sever ties with key banking partners worldwide. Now, the resignation of its high-ranking officials has brought it back into the spotlight. According to a Fortune report, the stance of Binance CEO Changpeng Zhao (CZ) against investigations opened by regulatory authorities has led to the resignation of the exchange’s top executives.
Binance’s Top Executives Tendered Resignations to Zhao
Fortune reported that top executives, including General Counsel Han Ng, Chief Strategy Officer Patrick Hillmann, and Senior Vice President in charge of compliance Steven Christie, have told Zhao this week that they will be leaving the company. The decision of the top executives to leave Binance follows the resignation of Matthew Price, a former IRS member who was brought in to oversee global investigations and intelligence in 2021.
Sources reached by Fortune point to Zhao’s handling of the investigation launched by the U.S. Department of Justice as the reason for the executives’ resignations. The sources claim that the investigation, alleged to have been ongoing for over a year, is related to serious allegations such as Binance‘s attempt to deceive U.S. regulators, money laundering on the company’s platform, and sanction violations.
The decision of top executives to leave Binance implies that the giant exchange is facing a managerial and strategic crisis amid significant regulatory pressure. In particular, the resignation of many individuals from the legal and compliance departments, who were directly dealing with regulatory bodies, led to comments that the pressure on Binance would increase even further.
Binance is currently facing lawsuits filed by the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) with serious allegations. It is also expected that the U.S. Department of Justice will soon take action against both the company and Zhao.
Rumors of Zhao’s Resignation Resurfaced
Following the resignation of top Binance executives, rumors re-emerged that Zhao would step back from his CEO position. Numerous investigations in Europe, Australia, and other countries, along with those in the U.S., had already sparked rumors that Zhao might step aside as part of his effort to help Binance weather the regulatory storm. In a story published in June, Bloomberg hinted that rising Binance executive Richard Teng could become the new CEO of the company, showcasing his long biography and suggesting him as Zhao’s successor. The tech genius Zhao, who is well-versed in both Western and Asian culture, has not yet given any signs of stepping aside.
Although Binance continues to be by far the world’s largest crypto exchange, its market share has begun to decline in recent months as a result of increased regulatory pressure and the decision of banking partners in the U.S., Europe, and other jurisdictions to cut off the company’s access to fiat currency.
