Exodus of Senior Managers From Binance ‘No Cause For Concern,’ Says CZ

On Jul 7, 2023

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What Three senior executives at Binance have announced their departure
Why The exits are being interpreted by market analysts as managers getting off a sinking ship
What next Their replacements have been announced and will take up their roles shortly

Binance has announced that three of its senior managers are to depart the company.

While market analysts are interpreting this as signs of executives abandoning a sinking ship, CEO Changpeng Zhao has played it down on Twitter, labeling it nothing more than ‘usual turnover.’

Binance CEO Labels Reports as ‘FUD’

According to a Fortune report, several senior executives, including Han Ng (general counsel), Patrick Hillmann (chief strategy officer), and Steven Christie (SVP for compliance), have informed Zhao of their departure this week.

However, the company’s CEO, Changpeng Zhao (CZ), appears to be brushing off the news and maintaining a confident stance.

CZ took to Twitter on Friday morning (Asia time) to set the record straight, emphasizing that news outlets had provided inaccurate reasons for the departures, which were entirely false.

4. More FUD about some departures. Yes, there is turnover (at every company). But the reasons dreamed up by the “news” are completely wrong.
As an organization that has grown from 30 to 8000 people in 6 years, from 0 to the world’s largest crypto exchange in less than 5 months…
— CZ 🔶 Binance (@cz_binance) July 6, 2023

He labeled the reports as FUD, a term commonly used in the crypto community to describe fear, uncertainty, and doubt.

In his tweet, Zhao mentioned that turnover is normal in companies due to changing markets, the evolving global environment for crypto, and personal circumstances.

He thanked the departing team members for their contributions to the company’s growth and extended his best wishes to them.

Zhao also took the opportunity to congratulate the team members who have assumed new roles, highlighting their high caliber.

Big scoop from @jeffjohnroberts: Several Binance executives are leaving the company over CZ’s handling of an ongoing Justice Department investigation.
These include GC Han Ng, CSO Patrick Hillmann, and SVP for compliance Steven Christie:https://t.co/eF7YRbT6cN
— Leo Schwartz (@leomschwartz) July 6, 2023

Binance, one of the world’s leading cryptocurrency exchanges, has experienced a wave of top executive departures.

This development is expected to intensify the pressure on Binance, as the individuals leaving are from the legal and compliance departments, which are directly involved in interacting with regulators.

In a tweet posted on Thursday, Hillmann clarified that his departure from the company was on good terms.

Apologies for any typos, but I was not expecting to be tweeting about this today.
It’s true that I am leaving @Binance, but I’m doing so on good terms. I continue to respect and support @cz_binance and am grateful for having had the incredible opportunity to work under his…
— Patrick Hillmann (@PRHillmann) July 6, 2023

After serving Binance for two years, he expressed his desire to embark on a new challenge, especially considering his family’s forthcoming addition.

Pressure on Binance From Regulatory Bodies

The leading crypto exchange is currently facing regulatory pressure from authorities worldwide.

In June, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against the exchange and its CEO, Zhao, accusing them of violating securities laws.

This legal action had a significant impact on Binance’s exchange token, $BNB, leading to a 16.96% decrease in its value, as it was classified as a security by the SEC.

Adding to the regulatory challenges, the Australian Securities and Investments Commission (ASIC) reportedly searched Binance Australia’s office, according to anonymous sources cited by Bloomberg.

Rumors have emerged due to numerous investigations in the U.S., Europe, Australia, and other regions, that Zhao may resign to assist Binance in dealing with the regulatory challenges.

In a recent report, Bloomberg profiled Richard Teng, a Binance executive, as a potential successor to CEO Zhao amid discussions about succession plans.

Meet @_RichardTeng, #Binance Head of Asia, Europe, and MENA, with over three decades of financial and regulatory experience.
By working closely with policymakers, regulators, and industry players, Richard focuses on supporting our growth in a compliant and sustainable manner. pic.twitter.com/HQWFwCOO2O
— Binance (@binance) May 17, 2023

However, Zhao, a highly skilled and culturally adaptable technology innovator, has not shown any indication of being willing to relinquish his position.

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