Binance.US Said to Have Laid Off Employees After US SEC Charges

The US 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 spokesperson did not respond to emails 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 SEC on June 5 accused Binance and its founder and CEO Changpeng Zhao 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 $2.2 billion (nearly Rs. 18,000 crore) held in crypto and some $377 million (nearly Rs. 3,100 crore) 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 they were leaving the company, with one citing a “round of layoffs.”

© Thomson Reuters 2023