Binance lays off over 1,000 employees, including 36 in India- Report
Cryptocurrency exchange Binance has reportedly laid off 1,000 employees as it faces regulatory scrutiny and investigations in the US. The layoffs were global, with customer-service workers being the worst affected. Binance had a global staff of 8,000 prior to the layoffs.
Binance, has laid off 1,000 people in the continued exercise to reduce its workforce, while the crypto giant battles federal investigations and regulatory crackdowns in the United States, Wall Street Journal reported.
A Binance spokesman confirmed to WSJ that employees were being let go but declined to say how many.
“As we prepare for the next major bull cycle, it has become clear that we need to focus on talent density across the organization to ensure we remain nimble and dynamic. This is not a case of rightsizing, but rather, re-evaluating whether we have the right talent and expertise in critical roles," he said.
The exchange has been the target of a series of actions by US regulators over the past months as they try to control an industry that for long ran loose.
The Securities and Exchange Commission sued the company and its founder, Changpeng Zhao, in June. It alleges they illegally operated in the country and misused customer funds, among other things.
Binance has denied the allegations. The exchange has also faced setbacks in Europe as it tries to get licenses to operate.
The biggest challenge for the exchange, however, is a continuing investigation by the Justice Department.
Binance executives are worried that the DOJ will file charges against the firm and Zhao. Zhao has resisted giving up control of the company or stepping aside, and many inside the firm believe his staying could put Binance’s survival into question, the Journal reported.
A series of high-profile employees recently left, including its general counsel, chief strategy officer and head of investigations.
Amid fears of a Justice Department action, the exchange decided to eliminate any physical presence in the US, where it is relocating or laying off about 150 people.
(With inputs from WSJ)
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