The chief strategy officer of Binance, Patrick Hillmann, acknowledged his resignation from the cryptocurrency exchange and stated that he is doing so amicably after a two-year employment. Binance has faced additional challenges due to Hillmann’s departure and the departure of other senior compliance professionals. The company is experiencing a period of increased difficulties.
Apologies for any typos, but I was not expecting to be tweeting about this today.
— Patrick Hillmann (@PRHillmann) July 6, 2023
Hillmann announced his departure on July 6 in a tweet, writing that it was time to move on to the next challenge. He stated that the moment was appropriate for him to go because he is expecting his second child. Following a Fortune article, the tweet revealed that Hillmann and other Binance officials departed over CEO CZ Zhao’s response to the Justice Department’s inquiry. The information came from the article. The information came from an internal source. The report also mentioned the resignations of Steven Christie, senior vice president for compliance, and general counsel Han Ng.
Departure of Hillmann Amid Binance’s Turbulent Times
In response, Zhao dismissed the claims as “FUD” and declared the explanations for the executive departures fabricated and entirely untrue. He refuted the allegations. He responded to the problem in a tweet. Eleanor Hughes, Binance’s head of legal for APAC and MENA, will take up Ng’s position as general counsel, according to a source cited by Bloomberg. Noah Perlamn, who joined the company in February as the chief compliance officer, will also stay with the organization.
4. More FUD about some departures. Yes, there is turnover (at every company). But the reasons dreamed up by the “news” are completely wrong.
As an organization that has grown from 30 to 8000 people in 6 years, from 0 to the world’s largest crypto exchange in less than 5 months…
— CZ 🔶 Binance (@cz_binance) July 6, 2023
When prompted for a response, Binance cited Zhao’s tweet. Binance is reportedly being investigated by the US Department of Justice (DoJ) for potential violations of US sanctions involving Russia. The investigation focuses on allegations of enabling Russian usage of the exchange. In June, the SEC filed a lawsuit against Binance, accusing the exchange of offering unregistered securities and misusing client funds. The lawsuit includes several other allegations. Additionally, the Commodities Futures Trading Commission (CFTC) sued Binance in March for allegedly failing to register properly with the watchdog.
The turbulent time Binance is currently experiencing has been made much more difficult by the loss of important compliance leaders and the ongoing legal issues. To maintain confidence, Binance must address these trends and prioritize compliance and regulatory adherence.