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A significant number of high-ranking officials at Binance are reportedly departing in large numbers as the company faces a substantial lawsuit from the Securities and Exchange Commission (SEC) and a Justice Department investigation concerning its CEO Changpeng Zhao (CZ).
One executive – former Chief Strategy Officer Patrick Hillman – has already verified his exit.
Disarray Within Binance?
A report from Fortune on Thursday indicated that general counsel Han Ng and Senior Vice President for Compliance Steven Christie are also leaving the company this week, along with Hillman.
Their departures follow the recent resignation of former IRS agent Matthew Price, who held the position of Binance’s Global Head of Intelligence and Investigations. An individual familiar with the situation informed Fortune that these exits are a response to CZ’s handling of the DOJ’s investigation into himself and his exchange.
In a lawsuit filed against the firm last month, the SEC accused Binance of improperly managing client assets across its international platform, U.S. platforms, and other firms controlled by Zhao, while also breaching sanctions regulations.
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Binance has contested such allegations made by both regulatory bodies and media organizations for years. One of the individuals often defending against these narratives has been Patrick Hillman himself, who criticized Reuters in May for asserting that Binance was combining client funds with its corporate treasury.
“It’s true that I am leaving Binance, but I’m doing so on good terms,” Hillman stated on Twitter on Thursday. The executive noted that his wife is expecting their second child, prompting him to believe it was the “right time to step aside.”
“I continue to respect and support and am grateful for having had the incredible opportunity to work under his leadership,” he added.
Hillman also addressed rumors regarding “mass layoffs” at Binance in June, asserting that the company was not “rightsizing” but merely “reevaluating roles” as part of a standard “talent density audit.”
CZ Addresses the Situation
“Yes, there is turnover (at every company). But the reasons dreamed up by the “news” are completely wrong,” he wrote on Twitter. “As markets and the global environment for crypto changes, as our organization evolves, and as personal situations change, there is turnover at every company.”
CZ further stated that the executives did not resign within the same week. “They exaggerate everything,” he remarked.
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