Binance sees continued regulatory troubles, prompting French head to quit
- Binance is facing a series of regulatory challenges, leading to the departure of several high-ranking executives.
- Binance’s managing director in France, Stéphanie Cabossioras, stepped down from the firm.
- The recent exit aligns with revelations from Sam Bankman-Fried that he wanted regulators to crack down on Binance.
Binance, the largest cryptocurrency exchange by volume, is grappling with top executive exits, with the managing director of its French unit the newest addition. At least five top bosses departed the firm in recent months as it struggles with a series of regulatory challenges across the markets it operates.
Binance Paris director exits
Stéphanie Cabossioras, the managing director of Binance's French unit, has stepped down, adding to the list of high-ranking executives who have left the company in recent months.
David Prinçay, the President of Binance France, expressed his appreciation for Cabossioras' contributions in a post on X (formerly Twitter).
La DG adjointe de Binance France @StepCabossioras quitte l’entreprise et sort du directoire du géant.
— Hasheur (@PowerHasheur) October 18, 2023
Dans cette période délicate entre le bear market et le cadre réglementaire qui touche les activités de Binance, ça va faire du bruit et ce ne sera pas une agréable annonce.
Cabossioras joined Binance in April 2022 after serving as Deputy General Counsel at France's markets regulator, Autorité des Marchés Financiers.
Within a year of her joining, Binance faced mounting regulatory scrutiny in France. In June, reports emerged that French authorities were investigating the exchange over allegations of illegal advertising and lax money laundering prevention measures in the country.
The Financial Times quoted an official from the Paris prosecutor's office that confirmed an ongoing inquiry since February 2022. But, Binance's challenges aren't isolated to France. The cryptocurrency exchange retracted its operations in various parts of the world, most recently in Russia.
In June, the US Securities & Exchange Commission (SEC) levered 13 charges against Binance Holdings and its founder, Changpeng Zhao. The lawsuit claimed that the exchange made securities law violations, including operating unregistered exchanges.
In the meantime, the company bid farewell to key figures such as Mayur Kamat, Senior Vice President, and Global Head of Product. In September, the CEO of Binance.US, Brian Shroder, announced his departure, while Patrick Hillmann, who had been the Chief Strategy Officer since 2021, made an exit in July.
July also saw the departure of Steven Christie, Senior Vice President for Compliance, and Hon Ng, the General Counsel. In the same period, Yibo Ling, Binance's U.S. Chief Business Officer, also left the exchange.
SBF trial reveals Binance, FTX competition
Stéphanie Cabossioras' exit also coincides with revelations made during a recent court trial of Sam Bankman-Fried, the former chief of collapsed FTX exchange. It turns out, based on media reports, that Bankman-Fried was actively seeking regulatory action against Binance. This was revealed in private notes from Caroline Ellison, who served as the CEO of Alameda Research.
The notes, as quoted by the Financial Times, under the heading "things Sam is freaking out about," showed that one of his top priorities was "getting regulators to crack down on Binance."
It looks like Binance will continue to navigate turbulent waters on the regulatory front, with high-profile exit posing more challenges and uncertainty for the largest exchange. It is yet to be seen if the company can find a stable path forward.
Author
Shraddha Sharma
FXStreet
With an educational background in Investment Banking and Finance, Shraddha has about four years of experience as a financial journalist, covering business, markets, and cryptocurrencies.
