Home » US business news • US Employment News » Binance’s US affiliate cuts 50 jobs following SEC lawsuit
Binance’s US affiliate cuts 50 jobs following SEC lawsuit
https://www.whatjobs.com/news/usa/us-business-news/binances-us-affiliate-cuts-50-jobs-following-sec-lawsuit
By Nithya Bose in US business news, posted June 18, 2023
Binance.US, the American arm of cryptocurrency exchange Binance, has initiated a round of layoffs, resulting in the loss of nearly 50 employees.
The move comes just a week after the Securities and Exchange Commission filed a lawsuit against the exchange and its founder, Changpeng Zhao.
Documents reviewed by CoinDesk indicate that Binance decided to downsize its teams and reduce expenses due to the "costly litigation process."
Read More: Binance avoids US asset freeze despite SEC pressure
The documents said: “This was a very hard decision—one that we didn’t take lightly. We are sad to see our colleagues depart, but we wish them the best and will do what we can to assist them in this transition.”
The recent cuts follow a previous round in May, which Binance attributed to evaluating the suitability of its workforce.
However, this time, the documents indicate that the layoffs directly respond to the ongoing litigation.
The SEC's 136-page lawsuit levied 13 charges against Binance, its US subsidiary, and Changpeng Zhao.
Read More: SEC seeks asset freeze for Binance US units in regulatory lawsuit
It includes selling unregistered securities and operating as an unregistered securities exchange.
The agency claimed that Binance subverted controls to “secretly allow high-value U.S. customers to continue trading on the Binance.com platform” despite the service being closed to the region.
Following the lawsuit, the SEC requested a freeze on Binance.US's assets, and Binance.US responded by halting dollar trading on its platform and rebranding it as a "crypto-only" exchange.
Need Career Advice? Get employment skills advice at all levels of your career
The federal judge overseeing the case has urged both parties to reach an agreement without a court order.
In the aftermath of the lawsuit, Binance.US and Binance.com have experienced significant net negative outflows of billions of dollars.
The regulatory pressure and ongoing litigation have created challenges for the exchange and its operations.
Binance has not provided an immediate response or comment on the layoffs.
Follow us on YouTube, Twitter, LinkedIn, and Facebook.
