Multiple Binance Executives Resign Amid CZ’s Handling Of DOJ Probe: Report

A slew of senior executives at Binance are reportedly fleeing en masse as the company grapples with a massive lawsuit from the Securities and Exchange Commission (SEC) and a Justice Department investigation into its CEO Changpeng Zhao (CZ).

One executive – former Chief Strategy Officer Patrick Hillman – has already confirmed his departure.

Chaos In Binance’s Ranks?

A report from Fortune on Thursday claimed that general counsel Han Ng and SVP for Compliance Steven Christie said they are leaving the company this week, alongside Hillman.

Their exit follows former IRS agent Matthew Price’s recent resignation, who served as Binance’s Global Head of Intelligence and Investigations. One person familiar with the matter told Fortune that the departures are a reaction to CZ’s response to the DOJ’s probe into himself and his exchange.

In a lawsuit against the firm last month, the SEC alleged that Binance had mishandled client assets between its international platform, U.S. platforms, and other Zhao-controlled firms, while also violating sanctions laws.

Binance has fought such claims made by both regulators and media outlets for years. One to counter such narratives has often been Patrick Hillman himself, who blasted Reuters in May for claiming that Binance was mixing client funds with its corporate treasury.

“It’s true that I am leaving Binance, but I’m doing so on good terms,” said Hillman over Twitter on Thursday. The executive explained that his wife was soon to have their second child, thus he thought it was the “right time to step aside.”

“I continue to respect and support and am grateful for having had the incredible opportunity to work under his leadership,” he added.

Hillman also criticized rumors about “mass layoffs” at Binance in June, claiming the company was not “rightsizing” but simply “reevaluating roles” as part of a regular “talent density audit.”

CZ Responds

As with many Binance rumors, CZ responded to reports about executive departures with the number ‘4’ – a Zhao-coined crypto slang term to ignore FUD (fear, uncertainty, and doubt) surrounding his exchange.

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

“Yes, there is turnover (at every company). But the reasons dreamed up by the “news” are completely wrong,” he wrote to Twitter. “As markets and the global environment for crypto changes, as our organization evolves, and as personal situations change, there is turnover at every company.”

CZ added that the executives did not resign within the same week. “They exaggerate everything,” he said.