In response to CEO Changpeng Zhao’s handling of the ongoing investigation by the US Department of Justice (DOJ), several high-ranking executives at Binance have announced their resignation this week, according to a source familiar with the matter as reported by Fortune on Thursday.
Among the departing executives are General Counsel Hon Ng, chief strategy officer Patrick Hillmann, and SVP for Compliance Steven Christie. Additionally, former IRS agent Matthew Price, who was part of Binance’s team, has also left the company. Their departure is seen as a significant blow to Binance, particularly given their roles in the legal and compliance departments.
In a recent tweet, Hillmann clarified that his departure from Binance was on amicable terms and expressed continued support and respect for CEO Changpeng Zhao, commonly known as CZ. Hillmann acknowledged the valuable experience of working under CZ’s leadership and expressed gratitude for the opportunity.
However, the resignations of these key executives, especially from crucial areas like legal and compliance, further intensify the challenges Binance faces in maintaining a positive relationship with regulators. Binance has been grappling with regulatory scrutiny for some time, and these recent exits only compound the pressure on the cryptocurrency exchange.
Moreover, these departures come amidst rumors surrounding ongoing investigations by the DOJ into Binance’s alleged misconduct. The investigations are said to focus on accusations of deceiving US regulators, engaging in money laundering activities, and violating sanctions on its platform.
Notably, John Reed Stark, a former Chief of the SEC Office of Internet Enforcement, recently expressed his belief that the DOJ is increasingly likely to file charges against Binance. Stark highlighted the nature of the complaints filed by the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), noting that they read more like criminal indictments, with allegations of fraud, deception, obstruction of justice, and money laundering.
As Binance continues to navigate these regulatory troubles, the departure of top executives and the potential for impending legal action casts a shadow over the company’s future. Binance will need to address these challenges head-on and work closely with regulators to restore confidence in its operations and compliance practices.
