According to insiders and social media posts from employees, the US-based affiliate of cryptocurrency behemoth Binance has reportedly carried out a series of layoffs subsequent to being charged by regulators for violating securities laws and facing an asset freeze. Although the exact number and seniority of affected employees remain unverified, one source mentioned an estimated 50 individuals being laid off. Requests for comments from a Binance.US spokesperson went unanswered.
Sources revealed that employees working in Binance US’ legal, compliance, and risk departments were among those reportedly dismissed. However, due to the sensitive nature of the subject, the sources wished to remain anonymous.
The US Securities and Exchange Commission (SEC) accused Binance and its CEO Changpeng Zhao on June 5 of establishing Binance.US as part of a deceptive scheme to circumvent securities laws designed to protect American investors. Binance vehemently declared its intention to vigorously defend itself against the charges.
Additionally, the SEC filed a lawsuit against BAM Trading, the operating company of Binance US, alleging that it misled investors regarding nonexistent trading controls on its platform.
Subsequently, the SEC requested a federal court to freeze Binance.US’ assets, including over $2.2 billion held in cryptocurrencies and approximately $377 million in US dollar bank accounts, citing concerns that the exchange might transfer the funds offshore.
Binance.US responded by deeming the asset freeze request unwarranted and asserted that the SEC’s allegations were unjustified. On LinkedIn, two Binance.US employees publicly announced their departure from the company, with one attributing their exit to a recent round of layoffs.