Binance.US cuts jobs in anticipation of costly SEC fight

Published Fri, Jun 16, 2023 · 07:18 AM

On Tuesday, Binance.US and the SEC agreed to work on a deal that avoids a total asset freeze at the cryptocurrency trading platform. PHOTO: REUTERS

BINANCE.US, the American affiliate of Binance Holdings founded by Changpeng Zhao, laid off an unspecified number of employees as the crypto firm prepares for what is likely to be an expensive legal battle with US regulators.

A spokesperson for the company confirmed the job cuts, without providing specifics. Reuters earlier reported that about 50 people were affected, citing one unnamed person with knowledge of the dismissals.

In a Wednesday letter to employees, seen by Bloomberg News, the company said the board had asked the management to shrink the size of teams across the company, because of its “preparation for a multi-year and very costly litigation process.”

Binance calls itself a virtual company and says it doesn’t have a headquarters.

Binance.US’s principal place of business is Miami, according to the SEC complaint. This month, Binance.US said it was being cut off by its payment and banking partners, forcing it to convert to a crypto-only exchange.

The exchange was targeted by the US Securities and Exchange Commission last week alongside Binance Holdings, operator of the much larger crypto venue Binance.com, for allegedly mishandling customer funds, misleading investors and regulators, and breaking securities rules. The companies have disputed the allegations.

HSBC, StanChart face pressure from Hong Kong to take on crypto clients: FT

The SEC sought the asset freeze last week for Binance.US, a trading platform owned by Binance Holdings founder Changpeng Zhao.

Binance.US, SEC not far apart on deal avoiding full asset freeze

The SEC last week widened its crackdown on the crypto industry through a one-two punch against the biggest firms, Binance Holdings and Coinbase.

Coinbase pushes for legislative remedy as it fights US SEC suit

The move comes amid renewed regulatory scrutiny at the world’s largest cryptocurrency exchange and will help cushion some of the fallout from recent blows, including Binance being sued by the US Securities and Exchange Commission.

Binance plans to swap 750 million of token pairs to ensure liquidity

The SEC launched lawsuits last week against market leaders Binance Holdings and Coinbase Global, and flagged a number of altcoins as unregistered securities, including SOL and ADA.

Crypto stays shaky after US SEC crackdown led to weekend selloff

The Business Times turns 50

Five decades of milestones and moments that shaped Singapore’s success story - told through our headlines.

Explore BT50

On Tuesday, Binance.US and the SEC agreed to work on a deal that avoids a total asset freeze at the cryptocurrency trading platform. Binance.US said a freeze would essentially put it out of business. BLOOMBERG

Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

Binance Securities and Exchange Commission (SEC)Tech layoffs

Share with us your feedback on BT's products and services

Feedback

TRENDING NOW

Japan becomes more valuable to Asean partners when that alliance increases Japanese capabilities without limiting its other relationships in Asia.

What role can Japan play in Asean’s future?

Lee Yeow Seng, group CEO of IOI Properties Group, also notes that Shenton House’s redevelopment is scheduled to begin in early 2027.

IOI Properties and CapitaLand Investment closer to acquiring One Raffles Place in joint bid

Ray Dalio, founder of Bridgewater Associates, says: “The power of diversification – it’s the free lunch.”

AI bubble may burst soon amid financing concentration, rising rates: Ray Dalio

RHB highlights OCBC for its “all-round balance-sheet strength and earnings momentum”.

OCBC sheds S$8 billion in value as shares close nearly 6% down; analysts cautious on banks