Since regulators last week charged the U.S. affiliate of crypto giant Binance with violating securities laws and seeking to seize its assets, layoffs have occurred.
Based on the accounts of two knowledgeable individuals who possess information about employees’ social media posts, new information has come to light regarding the recent layoffs at Binance.
Binance-SEC Legal Battle Causes Ripples in Crypto World
While the accuracy of the information could not be confirmed independently, it was mentioned by one source that around 50 employees were fired. Binance.US’s spokesperson did not respond to inquiries and remained uncommunicative through emails and phone calls.
The sources, who opted for anonymity due to the sensitive nature of the matter, revealed that the layoffs primarily impacted employees in Binance.US’s legal, compliance, and risk departments. This disclosure helps to clarify the specific areas within the organization that were affected by the terminations.
These recent Crypto developments are related to a continuing legal conflict between Binance, its founder and CEO Changpeng Zhao, and the U.S. Securities and Exchange Commission (SEC).
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Ripple Effects of Regulatory Measures
On June 5, the SEC accused Binance and Changpeng Zhao of creating Binance.US as part of a deceptive scheme to evade securities laws designed to protect U.S. investors. In response, Binance expressed its strong commitment to vigorously defend itself against the SEC’s allegations.
Additionally, the SEC filed a lawsuit against BAM Trading, the operating company of Binance.US, alleging that the platform misled investors regarding the existence of sufficient trading controls. These allegations raise concerns about the level of transparency and security measures implemented at Binance.
Shortly after the SEC’s actions, the regulatory body sought a court order to freeze Binance.US’s assets, which include more than $2.2 billion held in cryptocurrencies and approximately $377 million in U.S. dollar bank accounts.
The SEC’s request to freeze these assets reflects its concern that Binance.US may attempt to transfer these funds offshore, potentially obstructing regulatory oversight and complicating potential legal proceedings.
As the situation continues to unfold, the layoffs at Binance.US underscore the cascading impact that regulatory measures can have on a company and its employees.
The combination of terminations, legal disputes, and asset freezing contributes to the ongoing volatility surrounding Binance and its operations in the United States, prompting inquiries about the future direction of the exchange and the broader implications for the cryptocurrency industry.
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