Binance to lay off thousands amid mounting regulatory battles

Binance CEO and Founder Changpeng Zhao confirmed on Friday that the cryptocurrency exchange is planning to layoff potentially up to 3,000 employees. 

According to the Wall Street Journal, Binance has already axed 1,000 jobs with more being expected during the end of the year. The final figure of layoffs has been reported to be between 1,500 to 3,000. 

Despite 1,000 already losing their jobs, a Binance spokesperson stated that the 3,000 high-end number was “just not right”. 

“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,” said the spokesperson. 

The layoffs come off the back of the world’s largest cryptocurrency exchange fighting not one but two regulatory battles with the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). 

Both US regulators have cited several financial violations as a cause for the lawsuits against Binance, with the CFTC alleging that Zhao and his company ‘knowingly’ showed disregard to the provisions set in place. 

The 13 civil charges the SEC filed against Binance include allegations that the exchange ran and circulated unregistered securities, rerouting billions of investor dollars, as well as acknowledgement of conflicts of interest, lack of disclosure and a “calculated evasion of the law”. 

Zhao and Binance are adamant of no wrongdoing and have committed themselves to clearing the allegations and charges against them.