Binance.US Faces Layoffs Amid SEC Charges and Asset Freeze

Binance.US Faces Layoffs Amid SEC Charges and Asset Freeze
Following recent regulatory charges alleging securities law violations and asset freezing measures, the U.S. affiliate of cryptocurrency behemoth Binance has reportedly initiated a series of staff layoffs, according to individuals familiar with the matter and social media posts by employees.

Citing insider information, one source disclosed to Reuters that approximately 50 individuals were affected by the layoffs. However,there was no confirmation of the exact number or ascertain the seniority levels of the impacted employees.

According to anonymous sources, employees working in Binance.US' legal, compliance, and risk departments were among those let go, as revealed to Reuters. The confidentiality of these sources was requested due to the private nature of the matter.

On June 5, the U.S. Securities and Exchange Commission (SEC) leveled allegations against Binance and its founder and CEO, Changpeng Zhao, asserting that Binance.US was established as a means to evade securities laws designed to safeguard American investors. In response, Binance expressed its strong commitment to mounting a robust defense against these claims.

In addition to its legal action against Binance.US, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against BAM Trading, the operating company of Binance.US. The suit claims that BAM Trading deceived investors by providing misleading information about the existence of trading controls on its platform.

Following this development, the SEC sought a court order to freeze Binance.US' assets, which encompass over $2.2 billion in cryptocurrency holdings and approximately $377 million in U.S. dollar bank accounts. The SEC expressed apprehension that the exchange may attempt to transfer these funds overseas.

In response to the SEC's asset freeze request and allegations, Binance.US strongly criticized the move as "unwarranted" and deemed the SEC's claims as "unjustified."

Furthermore, two employees of Binance.US took to LinkedIn on Wednesday to announce their departure from the company, with one explicitly referring to a "round of layoffs" as the reason for their exit.

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