- Four Binance executives have quit in a short space of time, drawing more attention to the exchange
- Reports suggest that some or all are concerned about forthcoming criminal charges
- Changpeng Zhao deflected criticism, saying it was all part of running a large business
Binance is under increased pressure and scrutiny after its chief strategy officer, general counsel and a compliance official left the company within days, with some reports claiming that the trio were disappointed with CEO Changpeng Zhao’s response to recent legal action from US authorities. The departure of the executives from the company poses a significant management and strategic challenge for Binance, especially considering the current landscape of intense regulatory scrutiny and the fact that the departing individuals weaken the legal and compliance departments, which have direct interactions with regulators.
Are Imminent DoJ Charges to Blame?
Fortune was first to report that general counsel Hon Ng, chief strategy officer Patrick Hillmann, and SVP for compliance Steven Christie handed in their notices, following the exit of Matthew Price, a former IRS agent Binance hired two years ago to oversee global investigations and intelligence. Hillman tweeted about his departure following the publication of the story, claiming he was leaving 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
This story is not the picture that Fortune paints, however. It reports an inside source as saying that the executives split with Binance over Zhao’s response to an ongoing investigation by the Department of Justice, which it says relates to the exchange’s alleged attempts to get around US regulators as well as alleged money laundering and sanctions violations.
Zhao addressed the departures himself and claimed it was the regular turnover a business of Binance’s size could expect:
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
Binance is currently facing substantial regulatory lawsuits from both the Securities and Exchange Commission and the Commodity Futures Trading Commission, with these rumors regarding the Department of Justice investigation also suggesting that criminal charges could be coming.
