The US-arm of Binance reportedly cut 50 positions from its workforce in anticipation of a costly multi-year-long litigation process.
Exchange lays off staff
The US Securities and Exchange Commission (SEC) lawsuit against Binance has placed the US-arm in a bind, with the firm’s management letting go 10% of its workforce as revealed in an email to employees on Thursday.
As reported by CoinDesk, Binance.US managements said:
The move to become a crypto-only exchange was not a decision but rather a circumstance driven by a politically motivated regulator.
The management team said it was instructed to shrink the workforce across the company and reduce the burn rate. The exchange board also said that it’s preparing for a “multi-year and very costly litigation process”.
The email read:
“Unlike every other U.S. 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.”
According to Reuters, around 50 employees were laid off in the process. Binance.US employees in legal, compliance and risk departments were reportedly let go.
Binance’s senior executives addressed allegations last month that the global exchange planned to lay off about 20% of its 8,000 employees in June.
Chief communications officer Patrick Hillmann characterised the cuts as a routine “talent density audit”, saying that streamlining its workforce has been a part of “Binance’s secret sauce.”
Exchange CEO, CZ, also weighed in on Crypto Twitter, elaborating that lots of people are let go if they are not a good fit for the company’s culture, regardless of their performance.
The SEC initiated a legal complaint against Binance and its affiliated entities in the first week of June. Following that, the Commission requested a restraining order and a suspension of Binance.US’ assets. So far, Binnce.US assets have not been seized.
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