Brian Brooks resigned unexpectedly after just four months into the office. Some reports are pointing towards a conflict between him and Changpeng Zhao (CZ), the Binance founder.
Joshua Sroge has become Binance.US’ interim CEO, replacing Brian Brooks, who resigned on August 6. He is the third CEO to be serving Binance.US this year.
In April, former CEO Catherine Coley was ousted, and Brooks assumed the charge then.
Coley had an unceremonious exit. But in just a little more than 3 months, Brooks too has left the company.
Binance is already beleaguered by regulators across the globe; this development has worsened the situation.
Reports and investigations are suggesting that he was at odds with Changpeng Zhao, founder of Binance.
But why did he quit so early into the office?
Brooks had tweeted that “Despite differences over strategic direction, I wish my former colleagues much success. Exciting new things to come!”
Reports point to a tussle between Brooks and CZ.
The New York (NY) and the New York Times (NYT) have insinuated a tussle between CZ and Brooks about the amount of control CZ would wield over the exchange.
Brooks wished to solve Binance.US’ regulatory issues by raising venture capital, diversifying the board, and transferring technology from servers in Asia to ones in the US. This strategy was aimed at separating Binance.US from the global exchange Binance.com.
NYT alleges that their relationship was strained after a ‘venture capital deal fell through.
On the other hand, New York reported an anonymous source who revealed a mismatch in the vision of both CZ and Brooks. He wanted to transfer the technology to the US, but CZ was opposed it.
Inside a Report
“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 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 August 6,” reported by NY based on an unnamed source.
Before Brooks’ plans were finished, the clash between him and CZ culminated in his exit.
Report by New York Times
The NYT has a slightly different version. It claims that Brooks and another former employee hired by Binance resigned after GreatPoint Ventures, which was to have been a key investor in the proposed fundraising plan, became apprehensive over Binance’s regulatory troubles and pulled out.
The NYT report also adds that GreatPoint was skeptical because CZ reportedly owns 90% of Binance.US.
CZ told NY that this is “the wrong narrative” but did not explain why.
It is said a team is more important than an idea. Ideas undergo a lot of changes constantly, but the team cannot be changed so frequently. That’s why a coherent team is nothing short of a gold mine as it realizes the idea.