Binance’s US affiliate, facing regulatory charges from the SEC, has reportedly made staff reductions, as shared by individuals familiar with the situation and employees’ social media posts.
The exact number of employees affected remains unconfirmed, and Reuters was unable to verify the details. Despite attempts to reach out for comment, Binance.US spokespersons have not responded.
The dismissals primarily affected employees in legal, compliance, and risk departments, according to anonymous sources. The SEC’s allegations on June 5 accused Binance and its CEO, Changpeng Zhao, of deceptive practices in creating Binance.US to circumvent US securities laws. Binance has pledged a vigorous defense.
In addition, the SEC filed a lawsuit against BAM Trading, the operating company of Binance.US, alleging that it deceived investors regarding platform controls. The following day, the SEC sought a court order to freeze Binance.US’ assets, including over $2.2 billion in cryptocurrency and approximately $377 million in US dollar bank accounts, expressing concerns about potential offshore movement of these funds.
Binance.US responded, deeming the request unwarranted and the SEC’s claims unjustified. On Wednesday, two Binance.US employees announced their departure on LinkedIn, with one attributing it to the recent round of layoffs.