Brian Brooks, CEO resigned as CEO of Binance.US this Friday. This may be due to recent crackdowns posed by many superpowers, the U.S. included. Crackdowns such as these continue to pose many problems for Binance.US. Differing opinions on how to address crypto-crackdowns have led to confusion and very possibly Brooks’ resignation.
In his most recent tweet, Brooks says, “Greetings #crypto community. Letting you all know that I have resigned as CEO of @BinanceUS. Despite differences over strategic direction, I wish my former colleagues much success. Exciting new things to come!”
It is really no wonder that the crypto community is seeing resignations occur as crackdowns continue. In July of this year, Ricardo Da Ros, Binance Brazil’s director resigned as well. Much like Brooks, Da Ros’ resignation stemmed from differing opinions on strategic changes following crackdowns.
Related Reading | Binance Chief Brian Brooks Steps Down Just Months Into Tenure
Additionally, ongoing investigations continue to question the integrity of Binance.US. Though it is uncertain how these investigations will resolve themselves, a trend is developing as more continue to resign.
Binance.US Under The Microscope
According to India Today, “Cryptocurrency exchange Binance is reportedly undergoing an investigation for possibly facilitating illegal trades through its platform. The exchange might have helped in Bitcoin transactions worth around $756 million in 2019 that were associated with criminal activities.”
The trigger word here is “criminal activity.” Recent hearings on the Senate floor as well as in the EU are rife with talk about illegal transactions and activity.
Related Reading | Crypto Industry Lobbyists Are Losing Sleep Over New Tax Policy
Given this, the threat of malicious activity is not strictly limited to illegal trades; hacking also plays into governments’ concern over the possibility of criminal activity. As you may recall, a group of criminal hackers known as “DarkSide” stopped operations of the Colonial Pipeline and demanded a multimillion-dollar payment in Bitcoin as a ransom.
In response to these attacks and potential illegal trades, the Senate and the EU have been pushing for legislation and investigations on crypto, and Binance.US has been paying the price as of recently.
Earlier in the year, The Commodity Futures Trading Commission (CFTC) has jumped on board investigations concerning Binance.US. Additionally, Gary Gensler, the new Chairman of The Securities and Exchange Commission (SEC) has also expressed his concern over regulatory oversight.
Responding to the pressure, Binance released the following statement, “We have worked hard to build a robust compliance program that incorporates anti-money laundering principles and tools used by financial institutions to detect and address suspicious activity.”
Binance (BNB) Continues To Climb Despite Scrutiny
Steady Rise in BNB Price | Source: BNBUSD on TradingView.com
Even though crackdowns and investigations have continued, BNB has surpassed the high in February of $334 to now reach $345. Fortunately, the rise is spot-driven, meaning that the price movement of the asset has been influenced by those buying the asset, rather than those trading derivatives. Though time will tell the true outcome of BNB and other cryptos alike, the future seems optimistic, despite scrutiny from ongoing crackdowns and regulations.
Featured image from iStockPhoto, chart from TradingView.com