The company considered selling Changpeng Zhao’s shares to continue with growth plans but decided to lay off one-third of its staff instead.
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 third option was to go into hibernate mode — which would help the company maintain business operations and licenses — while it weathers the storm.
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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.
Read more: Binance Russia execs leave amid ongoing rumors of market exit
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