Layoffs: Binance lays off Over 1000

Over 1,000 employees of the cryptocurrency company Binance are said to have lost their jobs in recent weeks as a result of federal investigations and regulatory crackdowns in the US.  

According to a person familiar with the actions, the Wall Street Journal reported on Saturday that the global cuts affected about thirty customer-service employees in India.

The company Binance could lose a third of its workforce due to the layoffs.

A Binance spokesman who declined to provide the publication with a specific number regarding the layoffs confirmed the development to them.

It has become obvious that we must concentrate on talent density across the organization as we get ready for the next significant bull cycle if we want to stay agile and dynamic. This is not a right-sizing situation, but rather a re-evaluation of whether we have the necessary talent and knowledge in critical positions, the executive said.

Several executives left Binance last week, including the chief strategy officer, general counsel, and head of investigations.

Before the layoffs, Binance had 8,000 employees worldwide.

According to former employees quoted in the report, more layoffs occurred this week, with customer-service employees reporting the greatest impact.

The layoffs follow concerns that the Justice Department will take legal action against the cryptocurrency exchange and its CEO, Changpeng Zhao, as they deal with serious accusations that they ran a “web of deception” from the authorities.

The BNB crypto tokens and Binance-linked BUSD stablecoins were offered to the public as unregistered securities in June, according to the US Securities and Exchange Commission’s lawsuit against the exchange and its CEO.

The lawsuit also accused Binance of mixing up customer funds and violating securities laws with its staking service. It suggested that Zhao had hidden control over Binance.US, with a Zhao-owned company inflating the trading volume on the platform.

Binance vehemently denied all of the accusations and vowed to defend itself.