Binance has been in the news over the weekend over reports of massive layoffs at the crypto firm. A report in The Wall Street Journal claims that more than 1,000 staff members at Binance were given internal layoffs in recent weeks. The exchange’s ongoing legal troubles with the SEC were cited as the reason for the onset of internal turmoil at the company. Binance CEO Changpeng Zhao issued a clarification regarding these alleged internal job losses over the weekend, but the news remains grim.
Quarrels with the SEC have costly courts and legal liabilities. Allegedly led binance resorting to some aggressive cost-cutting measures. According to a WSJ report, Binance has laid off more than 1,000 employees in recent weeks. The report also claims that the firing exercise is ongoing and may lead to Binance letting go of more than a third of its employees.
Whereas Zhao While acknowledging that there have indeed been internal layoffs at the company, he also noted that Binance is working to “increase talent density” and that the company is also hiring.
“The figures reported by the media are absolutely wrong. 4 FUD,” he tweeted.
As we continually strive to increase talent density, involuntary terminations happen. This happens in every company. The figures reported by the media are absolutely wrong. 4 FUD.
Good thing they can’t stop themselves from talking about us.
We are still hiring. :to shake hands:
— cz :large_orange_diamond: binance (@cz_binance) 14 July 2023
There could be more layoffs for Binance in the coming weeks.
“This is not a matter of delegating authority, but a re-evaluation of whether we have the right talent and expertise in key roles as we prepare for the next major bullish cycle,” A Cryptopotato Report A Binance spokesperson was quoted as saying.
cnbc It is estimated that the number of layoffs at Binance will reach 3,000.
The SEC sued Binance and Zhao on June 5, alleging that the exchange artificially inflated its trading volume, diverted customer funds, and failed to ban US customers from its platform. SEC alleges Binance may have misled investors about its market surveillance controls.
In the latest development on the matter, Binance has entered into an agreement with the SEC to ensure that US customer assets remain in the US pending resolution of a wider lawsuit filed this month by the regulatory agency.
The settlement, outlined in court documents, still requires approval from the federal judge overseeing the trial.
Due to this legal battle, Binance may lose more money in the coming time.
The customer support team of the exchange remains the most vulnerable.
On July 14th, Binance turned six years old. At the time of 2017, the exchange was launched as a crypto-to-crypto exchange with five tokens and two languages with digital assets worth $15 million (roughly Rs. 123 crores).
Today, Binance is considered the largest crypto exchange in the world with a market cap of $3.97 billion (roughly Rs. 32,606 crores).