Binance US Staff Layoff Data Surfaces Amid SEC Crackdown

Crypto exchange Binance US finds itself navigating turbulent waters following a lawsuit from the Securities and Exchange Commission (SEC). Recent filings have unveiled the aftermath of the legal battle, revealing significant layoffs and a staggering decline in revenue.

Binance US Greatly Affected by SEC’s Lawsuit

Last June, the SEC initiated legal action against Binance.US, alleging violations of securities laws. The lawsuit cast a dark shadow over the exchange, triggering a cascade of repercussions. As per the latest filings, Binance US was compelled to downsize its workforce, slashing over 200 employees, which amounts to two-thirds of its staff.

Notably, the lawsuit not only dented the exchange’s reputation but delivered a significant blow to its financial health. While the industry champions decentralization and autonomy, regulatory oversight remains a formidable force capable of disrupting even the most established players. As such, exchanges must prioritize compliance to mitigate risks and ensure long-term viability.

In response to the SEC lawsuit and subsequent challenges, Binance.US must chart a path forward that prioritizes regulatory compliance, transparency, and building trust. Restoring investors’ confidence and navigating regulatory complexities will be paramount for the exchange’s survival and future growth. Meanwhile, Binance.US COO Christopher Blodgett in the filing, revealed that there was no actual wrongdoing involved with Binance.US.

Regulatory Action Against Binance.US

Recall that two additional executives, Sidney Majalya, Chief Executive Officer, and Head of Legal Krishna Juvvadi, left BinanceUS. These reductions came about as the SEC and other regulatory agencies, including the CFTC and the US Department of Justice, were investigating the company.

Also, the SEC filed over a dozen complaints against the company, its US platform, and its ex-CEO, Changpeng ‘CZ’ Zhao in the District Court of Columbia last year. In a 136-page complaint, the regulator charges were related to the company not registering its BinanceUS.com platform as a trading platform or broker-dealer clearing agency. 

Settlement with DoJ

It is important to note that Binance recently settled a lawsuit filed by the Department of Justice (DoJ), paying a whopping $4.3 billion as a fine. Their legal case with the SEC is currently ongoing, however.

The exchange is targeting dismissing the SEC lawsuit, stating that its operations do not fall under the SEC’s jurisdiction.