According to Reuters, the US subsidiary of crypto exchange Binance has begun firing employees in response to the complaints filed by the US Securities and Exchange Commission (SEC) over the past week.
Binance.US Laid Off Almost 50 Employees
In accordance with the two sources having insight into the situation, since the SEC filing on June 5, there have been nearly fifty layoffs. The staff members, who were asked to leave, are reportedly from Binance.US’s legal, compliance, and risk teams.
The two Binance.US employees posted an update on LinkedIn on Wednesday announcing their dismissal and cited the round of layoffs as the reason.
‘A Politically Motivated Regulator’
In a document obtained by CoinDesk, Binance described the SEC as a “politically motivated regulator.”
“As part of this transition, and because of our preparation for a multi-year and very costly litigation process, the Board has asked Management to shrink the size of our teams across the company and reduce our burn rate,” it reads.
Notably, the SEC and other regulatory organizations have both been looking into the firm recently. Nevertheless, Binance and affiliated businesses were sued by the SEC.
Charges Against Binance CEO Changpeng Zhao
On June 5, the organization filed more than a dozen charges with the District Court of Columbia against Binance, its US platform, and CEO Changpeng Zhao (CZ).
The operating business of Binance.US, BAM Trading, was also sued by the SEC for allegedly misleading investors about the platform’s trading controls, which the SEC claims were nonexistent.
SEC’s Request to Freeze Assets has been Denied
Just after the allegations, US District Judge Amy Berman Jackson rendered a key judgment by rejecting the SEC’s request to freeze the assets of Binance’s US branch. In addition, the judge stated that the conflict regarding the matter should be settled peacefully by both sides, from where the possibility of a settlement emerged.
The crypto enthusiast then asserted that a variety of consequences may result from the potential settlement. It might include Binance consenting for registration of its offerings with the SEC and compliance controls to guarantee that it adheres to US securities regulations.