Binance laid off over 1,000 employees

CFTC files lawsuit against Binance and Changpeng Zhao
CFTC files lawsuit against Binance and Changpeng Zhao

Bitcoin exchange Binance has laid off over 1,000 workers in recent weeks. It is reported by The Wall Street Journal, citing its own sources.

Layoffs continue and the company could lose up to a third of its approximately 8,000 workforce, they said.

The cuts are happening all over the world and, according to former employees of the exchange, mainly affected customer service services.

A Binance spokesperson confirmed to the publication that the company is laying off employees, but declined to give specific numbers.

“As we prepare for the next major bull cycle, it has become clear that we need to focus on talent density within the organization. This is not a headcount optimization, but rather a reassessment of whether we have specialists with the necessary skills and experience in key roles,” he said.

Earlier, a group of top managers left Binance. Executives who have left include Chief Strategy Officer Patrick Hillmann, Senior Vice President Compliance Stephen Christie and General Counsel Khan Ng.

In March CFTC filed a civil lawsuit against Binance. According to the agency, the platform violated the rules for trading derivatives by operating without proper registration. In June, claims against the exchange and its head, Changpeng Zhao, were put forward by SEC. The regulator filed a total of 13 charges.

However, according to The Wall Street Journal, the biggest problem in the management of Binance is the ongoing investigation by the US Department of Justice against the company. Management believes that Zhao should relinquish control of the exchange in the event of charges being brought as it is about her survival.

Amid concerns, Binance decided to eliminate its physical presence in the US by relocating or laying off about 150 people. This does not apply to the staff of the US branch, which has its own team.

Recall that in early June, reporter Colin Wu reported that the exchange had begun laying off staff, which would amount to 20% of employees.

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