The US arm of the exchange is formally called BAM Trading Services Inc. and was started in 2019 for US users, who are prohibited from using the main exchange, Binance Holdings. 
Special 
The US arm of the exchange is formally called BAM Trading Services Inc. and was started in 2019 for US users, who are prohibited from using the main exchange, Binance Holdings. Cryptocurrency exchange Binance’s US arm has witnessed a slew of exits from the company, including that of the Chief Executive Officer Brian Shroder.
Apart from the CEO, more than hundred employees have been fired from the company, Bloomberg reported on Wednesday. The US arm of the exchange is formally called BAM Trading Services Inc. and was started in 2019 for US users, who are prohibited from using the main exchange, Binance Holdings.
The CEO has been interimly replaced by Chief Legal Officer Norman Reed.
This is the second round of job cuts at Binance this year. The exchange has been facing legal and regulatory scrutiny. In March this year, the US Commodity Futures Trading Commission charged Binance and Zhao with "willful evasion of federal law." The Justice Department is probing Binance as well; it hasn't accused the company of any wrongdoing.
In June 2023, the US Securities and Exchange Commission accused Binance Holdings, Zhao and Binance US of mishandling customer funds, misleading investors and regulators, and breaking securities rules. Zhao and the companies have denied the allegations.
After the US SEC’s action, customers of Binance US were unable to deposit or withdraw dollars, a consequence of multiple banking partners cutting ties with the platform. The company has had to resort to an alternative method for Binance US' users to convert dollars into crypto.
Despite the mounting troubles, a spokesperson of Binance noted that the exchange now has a runway for seven years. "The actions we are taking today provide Binance.US with more than seven years of financial runway and enable us to continue to serve our customers while we operate as a crypto-only exchange," the spokesperson said.
The spokesperson also blamed the US SEC for the recent developments at the exchange, "The SEC's aggressive attempts to cripple our industry and the resulting impacts on our business have real world consequences for American jobs and innovation, and this is an unfortunate example of that."
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today
