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Binance CEO Changpeng Zhao
Cryptocurrency giant Binance has reportedly laid off over 1,000 employees in recent weeks.
The development comes amidst the firm's ongoing legal confrontations and regulatory challenges in the United States, according to a Wall Street Journal report. The layoffs followed the recent departure of a number of top executives from Binance, including the chief strategy officer, general counsel, and head of investigations.
The layoffs, which are said to decrease Binance's total workforce by a third potentially, included around 36 customer service personnel in India.
The company's spokesperson said, "As we prepare for the next major bull cycle, it has become clear that we need to focus on talent density across the organisation 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."
Prior to this, The crypto exchange had a global workforce of approximately 8,000. Former employees, as cited in the report, disclosed that more layoffs took place this week, with customer service employees being most impacted, the report added.
The layoffs come at a time when Binance and its CEO, Changpeng Zhao, are grappling with severe allegations by the authorities, leading to concerns of action by the Justice Department. Accusations levelled at the company include operating a "web of deception" and offering unregistered securities to the public in the form of BNB crypto tokens and Binance-linked BUSD stablecoins.
In June, the US Securities and Exchange Commission (SEC) filed a lawsuit against the exchange and Zhao, alleging violations of federal securities laws. The lawsuit also claimed that Binance's staking service contravened securities laws and accused Binance of co-mingling customer funds. It further suggested that Zhao had undisclosed control over Binance.US, with a Zhao-owned entity allegedly artificially inflating the platform's trading volume.
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