Binance Executive Responsible For The Fiat Business Leaves The Exchange Amid The Crisis

Key Points:

• Binance, a major cryptocurrency exchange, is witnessing a wave of senior executives departing amid increasing regulatory scrutiny.
• Notable departures include regional heads Gleb Kostarev and Vladimir Smerkis, along with Helen Hai, who led the exchange’s global fiat business.
• Its regulatory challenges, including SEC lawsuits and DOJ investigations, have led to layoffs and benefit reductions

According to the Wall Street Journal, several high-ranking executives have bid farewell to cryptocurrency giant Binance, marking a period of significant senior turnover within the company.

This move comes amid intensified scrutiny of Binance by regulatory authorities.

Notable departures include Gleb Kostarev, who served as the regional head overseeing the Commonwealth of Independent States region, encompassing Russia, Eastern Europe, Turkey, Australia, and New Zealand.

Vladimir Smerkis, the Russia chief, also stepped down. Additionally, Helen Hai, a long-standing figure at Binance since 2018, left her role, primarily leading the exchange’s global fiat business.

Binance’s recent struggles with regulators have resulted in staff layoffs and benefit cutbacks. Late last month, it revealed its contemplation of withdrawing from the Russian market and ceased allowing customers to transact with sanctioned Russian banks.

This action followed a Wall Street Journal report outlining the exchange’s involvement in facilitating Russians’ cross-border money transfers, which may have exacerbated its legal woes in the United States.

Mayur Kamat, the global head of products, chose to depart, stating:

“I will be cheering Binance from the sidelines.”

His exit follows the resignations of Chief Strategy Officer Patrick Hillmann, Senior Director of Investigations Matthew Price, and SVP for Compliance Steven Christie, all linked to concerns over founder Changpeng Zhao’s response to the U.S. Department of Justice’s investigation into Binance.

Changpeng Zhao responded to the departures, saying:

The exchange has faced intense regulatory pressure, including legal action from the Securities and Exchange Commission and a Justice Department investigation into money-laundering controls. Executives fear potential charges against the firm and its founder, CZ, as regulatory challenges continue to mount.

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