US head of crypto exchange Binance resigns after three months

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Brian Brooks, managing director of the U.S. branch of Binance, announced he was stepping down from his post at the struggling cryptocurrency exchange after just three months, citing “differences in strategic direction.”

In a tweet, Brooks, a former US banking regulator, wrote: “I am letting you know that I have resigned as CEO of Binance US. Despite the differences on the strategic direction, I wish my former colleagues every success. New exciting things to come!

Brooks served as Acting Currency Controller in the Trump administration until January this year, before taking over as head of the U.S. Binance Group in May. Prior to leading the OCC, he was General Counsel of Coinbase, the crypto exchange.

The sudden departure comes as Binance’s main global exchange, Binance.com has come under intense scrutiny this year from regulators in the UK, Germany, Japan and Hong Kong, between others, due to concerns about lax consumer protection and anti-money laundering practices.

I remain confident in Binance US’s business and its commitment to serving customers and innovating.

The spotlight has prompted some financial services groups and traditional investors to sever ties with the stock market. Meanwhile, the exchange has decided to restrict the supply of certain high-risk derivatives and add additional collateral for retail traders in certain geographies.

Brooks had said in the past that although Binance US and Binance.com share a common majority owner – Changpeng Zhao – they operate independently. Brooks said Binance US is licensing technology from Binance.com.

In an interview with Forbes last week, Brooks said he plans to ensure more independence between the two by adding more members to the board of the U.S. group unrelated to Binance.

He added that he expected Binance US to become one of the company’s two main cryptocurrency exchanges alongside its dominant rival Coinbase, and that the company was in the middle of a funding round. private. He also said he plans to see the company engage more in decentralized finance.

Brooks did not immediately respond to a request for comment.

In a statement also posted on Twitter, Zhao, who is both CEO of Binance.com and Chairman of Binance US, said the resignation would not affect Binance US clients, adding, “I remain confident in the Binance US activities and engagement. to serve its customers and innovate. Binance US is poised to continue to grow and strengthen the future of finance. “

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