A report on WSJ.com claims that more executives at Binance are departing the firm. Binance remains the largest crypto exchange in the world by a significant amount of activity, with Coinbase a distant second.
The report says that Regional head Gleb Kostarev and Russia chief Vladimir Smerkis have departed the firm. This follows the departure of the company’s general counsel, chief strategy officer, as well as its head of investigations.
Earlier today, an X (or Tweet) by Binance founder and CEO Changpeng Zhao, or CZ, alluded to the changes on the executive bench. Zhao said some people were moving to different roles while others were leaving to work somewhere else.
Some of our team members are growing into bigger roles, some outside of #Binance. Some are doing new exciting ventures. I even made intros/references for many of them. We are supportive of everyone. We are one community.
This also creates more growth opportunities within…
— CZ 🔶 BNB (@cz_binance) September 6, 2023
Binance is currently being sued by the US Securities and Exchange Commission but has dodged a criminal indictment so far. Rumblings indicate that the US Department of Justice is investigating the firm for certain transgressions, including potential money laundering violations.
In the early days of crypto, few crypto marketplaces adhered to bank-like AML/KYC requirements. In recent years, this has changed, and Binance has emerged as a vocal adherent to global securities laws. Yet, this may not be enough for federal attorneys who view Binance as a big target. The SEC has already filed charges against other crypto exchanges. Time will tell. Meanwhile, the SEC’s complaint alleges:
- Operation of an unregistered exchange, broker, and clearing agency
- Unregistered off and sale of crypto assets
- Failure to restrict US investors from accessing Binance.com
- Misleading investors
It is not yet clear if the SEC will be inclined to settle the charges as it has with other crypto targets.
