Crypto giant Binance’s US affiliate cuts jobs after regulator charges: Sources
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Employees in Binance.US’ legal, compliance and risk departments were among those dismissed, said sources.
PHOTO: REUTERS
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LONDON - The United States affiliate of crypto giant Binance has carried out a round of layoffs since regulators last week charged it with violating securities laws and sought to freeze its assets, said two people with knowledge of the dismissals and employees’ social media posts.
One of the sources said around 50 people were laid off.
Reuters was unable to independently verify the number or seniority of employees affected.
A Binance.US spokesman did not respond to e-mails and calls seeking comment.
Employees in Binance.US’ legal, compliance and risk departments were among those dismissed, the people told Reuters, requesting anonymity because the matter is private.
The US Securities and Exchange Commission on June 5 accused Binance and its founder and chief executive Zhao Changpeng of creating Binance.US as part of a “web of deception” to evade securities laws aimed at protecting US investors.
Binance said it would defend itself “vigorously”.
The SEC also sued Binance.US’ operating company, BAM Trading, alleging that it misled investors about “non-existent trading” controls over its platform.
A day later, the SEC asked a federal court to freeze Binance.US’ assets, including more than US$2.2 billion (S$2.94 billion) held in crypto and some US$377 million in US dollar bank accounts.
The SEC expressed concern that the exchange could move those funds offshore.
Binance.US called the request “unwarranted” and said the SEC’s allegations were “unjustified”.
Two Binance.US employees said on LinkedIn on Wednesday that they were leaving the company, with one citing a “round of layoffs”. REUTERS
