Binance loses C-suite executives as exchange and CEO face charges on securities laws violations

Binance Exchange and CEO Changpeng Zhao remain the subject of an investigation by the US Department of Justice after the Securities and Exchange Commission (SEC) flagged the exchange and its CEO on charges of money laundering and other security laws violation. While they brought in heavy artillery in the form of prominent lawyers, a recent development paints them in a bad light after key officials stepped down.

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Binance losing key officials could tilt the case in their disfavor

Binance Exchange has lost three crucial personnel from its top management, General Counsel Han Ng, Chief Strategy Officer Patrick Hillmann, and Senior Vice President for Compliance Steven Christie.

The news comes after a report by Fortune, citing a person close to the matter. Considering the strategic positions that the three individuals held in the company, bordering along the legal and compliance fronts, their exit comes at an unfortunate time and could prove detrimental to the ongoing defense of Binance and the CZ.

The three add to the list of personnel that have called it quits with the largest cryptocurrency exchange by trading volume. One recent case that further adds to the concern is Patrick Hillmann, formerly the chief strategy officer.

For ease of understanding, a strategy officer is basically a crisis manager. While Hillman articulated in the Twitter post above that his exit was “on good terms” and citing respect and support for his former boss, it does not placate the situation.

To some, the decision to leave the company during a time of crisis leaves the two defendants (exchange and CEO) exposed as they continue to maneuver under the radar of authorities from multiple jurisdictions, including the DOJ, SEC, and the Commodities Futures Trading Commission (CFTC). Noteworthy, this is within the US alone, with multiple others in Europe and Australia.

Binance and CEO have renowned lawyers in their corner

While the exit of the staff seems concerning, it is impossible to forget the repute of the defendants’ legal muscle, constituting former regulation officials. As reported here, an all-star lawyer George Canellos was added to their suite of legal defenses, an individual with a heft background serving as the former Chief of the Major Crimes Unit in the US Attorney's Office for the Southern District of New York.

He is also the former head of the SEC's New York Office and former SEC Enforcement Division Co-Director.

John Reed Stark, also a former SEC official, had lauded this selection, describing Canellos as one with a “unique and remarkably special set of skill sets accumulated during his professional tenure as both an SEC and a DOJ prosecutor.” Several other strong legal coats feature on Binance and CEO’s corner.

Changpeng Zhao has dismissed the development as FUD, saying employee turnover is common for every company.

Binance Coin price slumps 2%

Binance Coin (BNB) price is down 2% over the last day, to auction at $233.6 at the time of writing. The fall comes after the altcoin was rejected from the $256.2 resistance level on July 3, triggering a 10% load-shedding exercise over the last four days.

Further complicating the matter, technical indicators paint a bearish picture and suggest a continued downtrend. For one, the Relative Strength Index (RSI) is headed south to suggest falling momentum. Also, the Awesome Oscillators are in the negative zone, ideating the grip bears have on the Binance Coin price.

BNB/USDT 1-Day Chart

Nevertheless, there are prospects of a trend reversal if history is a good judge. Notice that the price pulled back every time Binance Coin tested the $231.2 support level. Investors can therefore anticipate a recovery as BNB attempts to collect buy-side liquidity.