Binance experiences executive departures amid SEC lawsuit and DOJ investigation, while CEO CZ dismisses concerns and turnover as natural.
Key Points
- Binance faces executive departures amid SEC lawsuit and DOJ investigation into CEO CZ.
- Former Chief Strategy Officer Patrick Hillman confirms departure; general counsel Han Ng and SVP Steven Christie rumored to leave.
- SEC lawsuit alleges mishandling of assets, sanctions law violations; Binance denies claims.
- CZ dismisses departures, cites turnover as natural, and addresses exaggerated reporting.
A wave of senior executives is reportedly departing from cryptocurrency exchange Binance as the company faces a significant lawsuit from the Securities and Exchange Commission (SEC) and a Justice Department investigation into its CEO, Changpeng Zhao (CZ).
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
Confirmed Departure of Former Chief Strategy Officer
Patrick Hillman, the former Chief Strategy Officer of Binance, has already confirmed his departure from the company. It is rumored that general counsel Han Ng and SVP for Compliance Steven Christie will also be leaving this week.
These departures follow the recent resignation of Matthew Price, a former IRS agent who served as Binance’s Global Head of Intelligence and Investigations. According to sources, the executives’ decision to leave is a response to CZ’s handling of the DOJ’s probe into himself and the exchange.
SEC Lawsuit Allegations
In the SEC’s lawsuit against Binance, it was alleged that the exchange mishandled client assets and violated sanctions laws through its international and U.S. platforms, as well as other Zhao-controlled firms.
Binance has consistently denied such claims made by regulators and media outlets. Patrick Hillman, in particular, has been known to challenge these narratives. In May, he criticized Reuters for alleging that Binance was mixing client funds with its corporate treasury.
Hillman confirmed his departure from Binance through a Twitter post, citing personal reasons and the timing of his wife’s pregnancy. He expressed his respect and gratitude for working under CZ’s leadership.
Response from CZ
CZ, known for his dismissive responses to Binance rumors, responded to reports of executive departures with a simple number ‘4.’ This is a term coined by Zhao to signify ignoring fear, uncertainty, and doubt (FUD) surrounding his exchange.
In a Twitter post, CZ emphasized that turnover is a natural occurrence in any company. He stated that personnel changes happen as markets, global environments, and personal situations evolve. He also clarified that the executives did not resign simultaneously and accused the news of exaggerated reporting.
The developments at Binance come as the company faces increasing scrutiny from regulatory authorities and legal challenges. It remains to be seen how these recent departures will impact the exchange in the long term.
