Brian Brooks, the former CEO of Binance.US, recently disclosed the reasons behind his departure from the exchange in court documents.
In an interview transcript with the US Securities and Exchange Commission, Brooks shed light on Binance CEO Changpeng Zhao’s role at Binance.US, emphasizing that Zhao was the true CEO of BAM Trading, the entity operating Binance.US.
This revelation comes amidst a recent enforcement action against Binance by the SEC, which has filed charges alleging a disregard for federal securities laws. Let’s delve deeper into Brooks’ statements and the implications they have for the ongoing legal proceedings.
According to court documents released this week, Brian Brooks stated that it became apparent to him that CZ held the position of CEO at BAM Trading, not himself.
Brooks made this distinction during his interview with the SEC, highlighting the difference between governance (the board’s responsibility) and management (the CEO’s role).
Brooks further revealed that he felt overruled when attempting to address certain issues, leading to a realization that he was not the one truly running the company.
The former CEO of Binance.US resigned from his position approximately four months after joining the exchange. Prior to his role at Binance.US, Brooks had a regulatory background, having served as the Acting Comptroller of the Currency within the US Treasury.
This position involved overseeing and regulating national banks and federal savings associations, among other responsibilities.
The SEC’s enforcement action against Binance and CZ involves 13 charges, alleging a blatant disregard for federal securities laws.
The SEC contends that Binance created BAM Management and BAM Trading as part of a scheme to evade US laws, falsely asserting that Binance.US operated independently while maintaining significant control over the US entity.
Brooks’ statements regarding CZ’s dominance at Binance.US could have implications for the ongoing legal proceedings. The SEC’s allegations of Binance’s control over BAM Trading align with Brooks’ claims, further supporting the enforcement action against the exchange and its CEO.