Binance.US, the American unit of leading cryptocurrency exchange Binance, has reportedly conducted a round of layoffs in response to the charges filed against it by the U.S. Securities and Exchange Commission (SEC) last week.
Binance.US Downsizes Workforce
According to a Reuters report that cited sources familiar with the matter and social media posts, approximately 50 employees in Binance.US were affected by the layoffs. Employees in Binance.US’ legal, compliance, and risk departments were among those who were dismissed.
The report revealed that two Binance.US employees said on LinkedIn that they were leaving the company, and one of them cited a “round of layoffs.” The layoffs were reportedly conducted following the SEC’s charge against Binance.US for allegedly violating securities laws.
Binance.US is a cryptocurrency exchange that operates in the United States as a separate entity from its parent company, Binance. The exchange was launched in 2019 and has grown in popularity in the U.S. market.
Binance vs. SEC
The SEC filed charges against Binance and its CEO Changpeng Zhao (CZ) on June 5, accusing them of creating Binance.US in an attempt to evade securities laws that protect U.S. investors. According to the SEC, Binance and CZ had created a “web of deception” to circumvent these regulations.
After filing the charges, the securities watchdog proceeded to file an emergency petition to restrain Binance.US’s assets in order to protect consumer funds, including repatriating client investments held overseas. However, a federal judge overseeing the case declined the restraining order freezing the company’s assets and asked both parties to resolve their differences without taking such severe measures.
As a result of these charges, Binance.US is reportedly laying off some employees and negotiating with the SEC to reach a settlement. The company disabled USD deposits on June 13 and has since moved to a purely crypto-based model.
As of this writing, Binance.US has not released a statement on the reported layoffs.
