The company considered selling Changpeng Zhao’s shares to continue with growth plans but decided to lay off one-third of its staff instead.
Binance US was weighing selling shares controlled by Binance co-founder Changpeng Zhao (CZ) to stick to the company’s growth plans, The Block has learned, citing sources familiar with the matter.
During an all-hands meeting, the firm’s staff was reportedly presented with a presentation describing three options for what to do next.
The first option was to continue the work as planned. Still, it would require CZ to “resolve” his issues with US regulators, put his shares in Binance US into a blind trust (a trust established by the owner giving another party full control of the trust), or sell them entirely.
The second one described a scenario where the firm would have to slow down its burn rate while keeping investing in the platform even despite the bear market, the report notes.
The third option was to go into hibernate mode — which would help the company maintain business operations and licenses — while it weathers the storm.
The Block suggests Binance US choose the last option, referring to the recent layoffs at the crypto exchange.
As crypto.news earlier reported, the American subsidiary of Binance laid off 100 employees (a third of its staff) following the departure of its CEO, Brian Shroder, who joined the exchange in September 2021. Binance US Chief Legal Officer Norman Reed has replaced Shroder on an interim basis.
Shroder’s departure is the latest in a series of resignations by high-profile executives from Binance, facing regulatory challenges in the US and other countries.