Brian Shroder, the CEO of the battered cryptocurrency exchange Binance.US, has left the company. Further, Binance.US will remove over 33%, or one-third, of its employees to remain afloat. The crypto exchange has been struggling amid growing scrutiny from the U.S. Securities and Exchange Commission (SEC).
The company said that the SEC’s aggressive stance against the crypto market has adversely impacted its business. The company added that the job cuts will lead to cost savings, providing it with seven years of financial runway as it will operate as a crypto-only exchange.
Binance.US was sued by the SEC in June for violating securities laws. Following the lawsuit, market makers and traders fled the exchange in large numbers, noted Kaiko, a crypto research firm. Moreover, Kaiko highlighted that the volumes for cryptocurrencies plunged in the second quarter, with Binance taking most of the hit. For Binance, volumes fell about 70%.
Binance.US has a licensing agreement with the largest crypto exchange, Binance.com, and operates as a separate legal entity. Aside from the U.S., Binance is struggling in other parts of the world, including Europe.
As the company continues to struggle, let’s look at how its crypto coin, Binance Coin (BNB-USD), is performing.
Why is BNB Price Falling?
Given the ongoing regulatory headwinds, Binance Coin has underperformed year-to-date. It is down about 14.03% so far this year. In comparison, two major cryptocurrencies, Bitcoin (BTC-USD) and Ethereum (ETH-USD), are up approximately 56.57% and 33.22%, respectively, year-to-date.
