**Binance Reportedly Lays Off Over 1,000 Employees Amid Legal Trouble**
The world’s largest cryptocurrency exchange, Binance, has reportedly laid off more than 1,000 employees. These cuts come as the company faces a high-profile lawsuit from the Securities and Exchange Commission (SEC) and potential enforcement actions from the U.S. Justice Department.
**Staff reduction and its impact on customer service**
According to sources, the layoffs have been taking place over the past few weeks and could result in a reduction of Binance’s staff by one-third, from approximately 8,000 employees. Former employees have stated that customer service employees were disproportionately affected by the cuts, and the layoffs were spread out globally. While the exact number of individuals laid off has not been specified, an employee at the company has confirmed that layoffs did occur.
**Previous employee churn and the latest scale of layoffs**
Binance had previously acknowledged a turnover of employees in May, just before the SEC filed 13 charges against the exchange and its founder and CEO, Changpeng Zhao, in early June. However, the scale of the recent layoffs had not been previously reported. The company representatives claimed that these actions were intended to evaluate the presence of “the right talent” at Binance.
**Key executive departures and sentiment among U.S.-based employees**
Last Thursday, several key executives resigned in response to Zhao’s handling of the Justice Department’s investigation. This includes general counsel Hon Ng, chief strategy officer Patrick Hillmann, SVP for compliance Steven Christie, and Matthew Price, who oversaw global investigations and intelligence. Additionally, during midyear performance reviews, U.S.-based employees were reportedly asked if they would be willing to relocate to other countries. Those who declined were let go.
**The potential impact on Binance amid ongoing litigation**
These executive departures and recent layoffs could potentially exacerbate the chaos within the exchange as it grapples with numerous legal challenges from U.S. regulators. In March, the Commodities and Futures Trading Commission (CFTC) sued Binance and Zhao, alleging that the company intentionally targeted U.S. customers for its international branch. Subsequently, in June, the SEC also filed charges against Binance and Zhao, accusing them of engaging in deceptive practices and evading the law.
**Rumors of impending indictment and ongoing DOJ investigation**
Since then, rumors have circulated about an impending indictment against Binance and Zhao. Reports suggest that the U.S. Justice Department has been conducting a long-running investigation into the exchange and its CEO. The potential outcome of these investigations remains uncertain.
In summary, Binance, the world’s largest cryptocurrency exchange, has reportedly laid off more than 1,000 employees in recent weeks. These layoffs come as the company faces significant legal challenges from the SEC and potential actions from the U.S. Justice Department. The departures of key executives and the possibility of further indictments create an atmosphere of uncertainty for Binance’s future.
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