Binance US CEO Brooks Resigned Over Independence From CZ

The Binance US CEO Brooks resigned from the exchange after a short time in the company due to the exchange’s refusal to relinquish control over the US operation so let’s read more in our latest Binance news.

The Binance US CEO Brian Brooks resigned earlier this month and the reports show that his departure was tied to teh exchange’s refusal to give control over the US operations. Brooks is among the most prominent figures in crypto and his abrupt departure as the head of the exchange’s US operation set off a wave of speculation about what exactly happened. Things are getting clearer now as the investigations suggest he was ousted by the founder Changpeng Zhao amid conflict over how to navigate the regulatory controversies and the US subisidary ties to the parent company.

Brooks increased to prominance as Coinbase’s top lawyer and for his crypto-friendly policies while running as the Office of the Comptroller of the currency head as an independent office within the Treasury Department which oversees banking regulations. He joined Binance in May this year with the expectations that his experience will help bring more legitimacy to the company’s US operations as it sought to expand the company’s influence in the country.

Brooks wanted to implement a multi-pronged strategy that revolved around putting distance between Binance and Binance US by appointing independent board members to Binance US and raising $100 million in capital to help the unit operate on its own. A part of the plan involved transferring the technology to servers based in the US, as reports show:

“The transfer was the final piece of the puzzle that Brooks believed would put Binance’s regulatory problems in the past. But in the early days of August, as Brooks finalized the plans for the transfer, CZ suddenly pulled the plug …. His strategy was rejected, Brooks saw no path forward to resolving the company’s regulatory issues, and therefore, could no longer work there. So he announced his resignation on August 6.”

The New York Times had a different version of the events, claiming that Brooks and another regulator resigned after Great Point Ventures became uncertain over Binance’s regulatory troubles and pulled out. The Times added that Great Point’s reluctance came because CZ owns 90% of Binance US and he said that this is quite the wrong narrative but didn’t explain why. The reports underscore some doubts over whether Binance US is an independent company as it is long professed or whether Zhao is pulling all strings all alone.

Source: https://www.dcforecasts.com/binance-news/binance-us-ceo-brooks-resigned-over-independence-from-cz/