Former Binance.US CEO, Brian Brooks, has shed light on his departure from the exchange in recently released court documents.
In an interview transcript with the US Securities and Exchange Commission, Brooks revealed that he realized Binance CEO Changpeng Zhao held the CEO position at BAM Trading, which operates as Binance.US.
This revelation came as a turning point for Brooks, leading him to resign from his position approximately four months after joining the company.
Brooks, who previously served as the Acting Comptroller of the Currency, explained to the SEC that he understood the distinction between governance, handled by the board, and management, the CEO’s responsibility.
However, he claimed that he was overruled when attempting to address certain issues within the company. This abrupt repudiation of their prior agreements made Brooks realize that he was not truly running the company and that the mission he initially signed up for had diverged.
Meanwhile, the SEC has filed a lawsuit against Binance and CZ, accusing them of a “blatant disregard of the federal securities laws.”
The SEC’s charges include allegations that Binance created BAM Management and BAM Trading as part of a scheme to evade US laws.
They assert that Binance.US was portrayed as an independent entity, but in reality, Zhao and Binance maintained significant control over it.
These revelations further contribute to the ongoing enforcement action against Binance, highlighting the intricate web of relationships and governance issues surrounding the exchange.