Binance US Layoffs: Impact and Extent
The U.S. branch of cryptocurrency giant Binance has recently conducted a significant series of layoffs following the allegations by regulators that it breached securities laws. The charges, filed just last week, prompted the Securities and Exchange Commission (SEC) to seek asset freezes against the company. This inside information about the layoffs comes from two individuals who wished to remain anonymous, alongside some social media posts from the firm's employees. It is estimated that around 50 employees lost their jobs, although this figure couldn't be independently confirmed by Reuters, nor was the level of seniority of the affected staff members clear.
Unresponsive Binance US Amidst Troubles
Attempts to obtain comments from a spokesperson for Binance.US about the layoffs have so far been met with silence, with no responses forthcoming to either emails or calls. The layoffs seem to have been wide-ranging, with staff from the legal, compliance, and risk departments among those let go, according to the sources who spoke to Reuters.
SEC's Allegations Against Binance and Its Founder
On June 5, the SEC accused both Binance and its founder and CEO, Changpeng Zhao, of contriving Binance.US as a deceptive mechanism designed to dodge U.S. securities laws intended to protect American investors. In response, Binance made it clear that it would strenuously defend itself against these accusations.
BAM Trading Under SEC Scrutiny
In addition to these charges, the SEC took legal action against BAM Trading, the operational firm behind Binance.US. The commission alleges that BAM misled investors about the trading controls on its platform, claiming they were non-existent.
SEC Seeks Asset Freeze: Binance US's Response
A day after filing these accusations, the SEC asked a federal court to freeze the assets of Binance.US, which include over $2.2 billion in cryptocurrency and approximately $377 million in U.S. bank accounts. This move was driven by the SEC's fear that the exchange might shift these funds overseas. In return, Binance.US referred to the SEC's request as "unwarranted" and branded their allegations as "unjustified."
Impact on Binance US Employees
Just recently, two employees of Binance.US announced their departure from the company via LinkedIn. One specifically attributed their exit to a "round of layoffs," shedding further light on the ongoing situation at the U.S. affiliate of the crypto giant.