Two additional high-ranking executives are leaving Binance.US, the United States branch of the global cryptocurrency exchange, following the departure of CEO Brian Shroder and a significant reduction in staff, according to The Wall Street Journal. Krishna Juvvadi, Head of Legal, and Sidney Majalya, Chief Risk Officer, have both decided to leave the company.

Juvvadi, who joined Binance.US in May 2022 from Uber, where he served as Global Head of Compliance, was one of the company’s contacts for communicating with the United States Securities and Exchange Commission (SEC). Majalya joined the company in December 2021 after working as Intel’s Chief Compliance Officer, and he also has a background at Uber.

Binance.US is currently facing legal action from the SEC, and the agency recently requested to file sealed documents in the case, suggesting the possibility of a criminal probe by the Department of Justice. Bloomberg reported in May that the Justice Department was investigating Binance.

The SEC filed a lawsuit against Binance.US, Binance, and CEO Changpeng Zhao in June, alleging that they engaged in unregistered securities operations and other improper activities. This led to difficulties with Binance.US’ banking partners and disruptions in USD deposits and withdrawals, which were only resolved in August when the company partnered with crypto payments firm MoonPay.

Binance.US has objected to the legal tactics employed by the SEC, requesting a protective order against the agency in August and describing the SEC’s requests as “unreasonable” and “unduly burdensome” in a motion filed on September 12. In addition to the SEC lawsuit, Binance was sued by the Commodity Futures Trading Commission in March for alleged violations of trading and derivatives regulations.

FAQs

1. Why are top executives leaving Binance.US?

The departure of top executives from Binance.US is likely due to a combination of layoffs and the legal actions taken by the SEC against the company.

2. What legal action is Binance.US facing?

Binance.US is facing a lawsuit from the SEC, which alleges that the company engaged in unregistered securities operations and other improper activities.

3. What is the status of the legal proceedings against Binance.US?

The legal proceedings against Binance.US are ongoing, with the SEC requesting to file sealed documents and the possibility of a criminal probe by the Department of Justice.

4. How has Binance.US responded to the SEC’s legal actions?

Binance.US has objected to the legal tactics employed by the SEC and has requested a protective order against the agency. The company has described the SEC’s requests as “unreasonable” and “unduly burdensome”.

5. Has Binance.US faced any other legal issues?

Yes, in addition to the SEC lawsuit, Binance was sued by the Commodity Futures Trading Commission in March for alleged violations of trading and derivatives regulations.

Summary

Two more top executives, Head of Legal Krishna Juvvadi and Chief Risk Officer Sidney Majalya, have resigned from Binance.US. Their departures come following the CEO’s departure and significant staff layoffs. Binance.US is currently facing legal action from the SEC, which alleges that the company engaged in unregistered securities operations. The SEC’s legal tactics have been met with objection from Binance.US.