The world’s biggest Cryptocurrency exchange Binance’s CEO Brian Brooks, a former top U.S. banking regulator, resigned after serving the exchange for less than four months.
Brooks announced his departure on Twitter, posting: “Letting you all know that I have resigned as CEO of Binance.US. Despite differences over strategic direction, I wish my former colleagues much success.”
The resignation is the latest blow for Binance, which has come under scrutiny from regulators in several countries this summer. Brian Brooks announcement come at a time when his resignation will be greeted with confusion and suspicion from the crypto community.
Citing “differences over strategic direction,” the now-former CEO said he had already resigned his position at Binance’s U.S. arm. Brooks had been leading the crypto exchange since replacing former CEO Catherine Coley on May 1.
Changpeng Zhao, the CEO of Binance — a separate entity from its U.S. arm — said Brooks stepping down would not “impact Binance.US customers in any way.” He explained:
“I remain confident in Binance. US's business and its commitment to serve its customers and innovate . As one of the largest cryptocurrency exchanges in the United States, Binance.US is poised to continue to grow and empower the future of finance.”
Binance has faced scrutiny even in the United States, with the Department of Justice and Internal Revenue Service investigating the firm for alleged illegal trading activity. The exchange is reportedly the subject of an investigation by the Commodity Futures Trading Commission regarding alleged trades by U.S. customers.
Others speculated that Brooks’ departure may have been connected with his belief that the crypto exchange business is not profitable in the long run. Those comments were made in an interview with Forbes weeks before his resignation.
Binance is not authorised to carry out activities in Italy, the country's market watchdog said, joining a string of global regulatory moves against the cryptocurrency exchange. Many other countries have also created problem for Binance recently.