Three executives resign, Binance faces challenges.

Binance faces challenges as three executives resign.

Author: James Cirrone, translated by Shanouba and LianGuai for blockworks

Since being sued by the US SEC in June, Binance has lost several executives. In the past two weeks, after reports of multiple Binance executives resigning, CEO and founder CZ responded to the situation. Fear, uncertainty, and doubt, or FUD for short.

“Some of our team members are taking on more important roles, and some have left Binance. Some are pursuing exciting new entrepreneurial projects. I have even introduced new opportunities to many people. We support everyone. We are a community,” CZ posted on X (formerly Twitter). He concluded the post by saying, “Ignore FUD and keep moving forward!”

The latest departing employees mentioned by CZ in the X post include Gleb Kostarev and Vladimir Smerkis.

Kostarev worked at Binance for over five years, serving as the Operations Director for Eastern Europe, the Commonwealth of Independent States, Turkey, as well as Australia and New Zealand. He has resigned. Smerkis has been the General Manager for the Commonwealth of Independent States for nearly two years.

Bloomberg reported that Binance’s Head of Product, Mayur Kamat, resigned for personal reasons. Last week, Binance also lost its Head of Asia Pacific, Leon Foong. Despite CZ claiming that all these situations are FUD, industry participants and regulatory agencies still believe that Binance has been on the back foot, especially since early June 2023 when the company and CZ himself were sued by the US Securities and Exchange Commission.

The former head of internet enforcement at the US Securities and Exchange Commission said on Thursday that the departure of Binance’s leadership provides “unique and rich enforcement opportunities” for law enforcement agencies.

For law enforcement agencies, the group of former executives from a company under investigation has always been one of the best sources of whistleblowers, defectors, and informants. Former insiders of the target company can provide detailed information about potential fraudulent activities, easily identify the parties involved, guide prosecutors to other strong witnesses, and provide a large amount of documentary evidence.

Travis Kling, Chief Information Officer of crypto asset management company Ikigai, believes that Binance is experiencing a “slow train wreck.” In an article on X, Kling listed all the negative events that have occurred at the crypto exchange since December last year. Some of the more recent key events include Binance allegedly violating US sanctions in Russia, ending its partnership with Mastercard, and reports of large-scale layoffs in July.

The fate of Binance is currently the most important factor in the crypto field and will be the focus in the coming months.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Opinion

Amazon's participation and the skyrocketing value of AI company Anthropic become FTX's biggest hope of repaying the debt?

FTX previously invested $500 million as a lead investor in Anthropic's Series B financing round, so the expected appr...

Blockchain

Life After the Collapse of Sanjian Capital: Surfing, Meditation, and World Travel for the Founders

When their hedge fund failed, the entire industry collapsed. The resulting crisis drained the savings of millions of ...

Blockchain

Blockchain investment: which "platform coin" has more investment value?

In the last lecture, I analyzed the "privacy currency" field in the blockchain industry. In this lecture, I...

Blockchain

Hacker's "honeypot": the exchange has been stolen 1.36 billion US dollars, accounting for 59.2% in 2018 alone

Bitrue, a Singapore-based cryptocurrency exchange, today announced a hacking attack that cost $4.3 million worth of X...

Blockchain

Starting to decentralize the game platform: Is it a good day to break the monopoly?

On May 31 , Xiao Xiao invited the founding partner of Xingyao Capital, Liu Jiang, founder of Xingheng Education, Chen...

Blockchain

Gemini Exchange sets up insurance company to provide $ 200 million in insurance for custody services

The Winklevoss brothers' Gemini exchange has set up an insurance company to prepare up to $ 200 million in insur...