Binance’s US affiliate conducted a round of layoffs after the SEC charged the exchange with securities violations last week.
Crypto giant Binance’s US affiliate, Binance.US, has reportedly laid off some of its staff after the Securities and Exchange Commission sued the exchange with securities violations and sought a temporary restraining order to freeze the exchange’s assets.
Reuters reports that around 50 people, or 10%, have been laid off. Sources say employees in the exchange’s legal, compliance, and risk departments have been dismissed.
Media outlet CoinDesk cites documents in which Binance.US management described the SEC as a “politically motivated regulator” that forced the company to become a “crypto-only exchange.”
The documents read:
As part of this transition, and because of our preparation for a multi-year and very costly litigation process, the Board has asked Management to shrink the size of our teams across the company and reduce our burn rate.
Adding:
Unlike every other US crypto company, we have been working to avoid this scenario, but circumstances have now shifted. 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.
Binance.US Suspends USD Deposits and Withdrawals
Last week, the SEC sued Binance and its CEO Changpeng Zhao, accusing the exchange of allegedly mishandling customer funds and lying to investors and regulators about its operations.
The next day, the agency filed a motion for a temporary restraining order to freeze the assets of two of Binance’s US units.
Days after the SEC filed suit against Binance and requested to freeze Binance.US’s assets, the exchange announced that it was suspending US dollar deposits, and its banking partners were preparing to halt fiat withdrawals from June 13.
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