Binance has laid off more than 1,000 employees worldwide in recent weeks.
The layoffs, which could range from 1,500 to 3,000 employees worldwide, last until the end of the year.
The cause is speculated to be that the world’s leading exchange is struggling in a legal battle with the SEC.
According to the Wall Street Journal, citing a source, due to regulatory investigations by the US Securities and Exchange Commission (SEC) and other regulatory challenges, cryptocurrency exchange Binance has fired more than 1,000 people employees worldwide in recent weeks.
According to sources, more than a third of Binance employees (about 8,000 people in total before layoffs) could eventually be affected by layoffs. A spokesperson for Binance confirmed the layoffs to The Wall Street Journal but did not disclose the number.
“As we prepare for the next major bull market cycle, we clearly need to focus on talent density across the organization to ensure we stay agile and dynamic,”
The spokesperson said.
Additionally, CNBC quoted a current Binance employee familiar with the company’s plans as saying that the layoffs will eventually lay off 1,500 to 3,000 employees worldwide and that the layoffs will continue through the end of the year. Although CEO Changpeng Zhao previously shared that the company is still recruiting
CNBC attributed the layoffs to the US Department of Justice’s ongoing investigation into Binance, citing current employees saying the investigation could end with a consent order or an agreement on billions of dollars worth of deals. Binance CEO Changpeng Zhao tweeted, adding that the exchange is “still hiring.”
Last month, the Securities and Exchange Commission (SEC) sued Binance and Director Changpeng Zhao for allegedly operating a “scam website.” Then, a lengthy Justice Department investigation into the company was also launched into its founder and chief executive officer.
It can be seen that Binance has taken decisive actions against the allegations to confirm the trust with users, but more or less top exchanges are still affected by the legal battle with crypto-biased regulators.
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