Earlier this month, the former head of the US Currency Comptroller’s Office (OCC), Brian Brooks, left your position of CEO of Binance.US, after just three months at crypto brokerage.
Now, sources are telling major news outlets that the “differences over strategic directions” mentioned by Brooks in his exit announcement from the company included a failed attempt to raise $100 million from venture capitalists.
A source involved in the fundraising process confirmed to The Block that Binance.US is still working to promote a $100 million round, which could be completed as early as next month.
The source said he is having more difficulty getting investors in the US because of regulatory concerns.
both the The New York Times as Bloomberg reported that crypto brokerage was in the early stages of a possible initial public offering (IPO), with Brooks’ agreement working as a first step.
According to the New York Times, GreatPoint Ventures and SoftBank were among the names that Brooks had cast for the deal, but both companies decided not to make the investment.
However, the deal that Brooks envisioned as a move toward an IPO eventually fell apart, as investors expressed concerns about investigations by US officials if they affiliated with the crypto giant Binance.
Although Binance.US is a separate company from Binance, Changpeng Zhao, owner of Binance, holds 90% stake in the American company, which worries investors.
Zhao told the Bloomberg that there is still “significant interest” from “high level investors” and Binance.US hopes to end the round sooner rather than later. Zhao also confirmed that the company hopes to go public at some point, with a date yet to be set.
Did you like this news? Download our app to read, in just one click, this and more than 150 articles daily.