Binance Reportedly Laying off Thousands of Employees Amidst Legal Scrutiny
According to reports, Binance is allegedly laying off thousands of employees, which comes just months after the company announced its intention to fill hundreds of open positions and reevaluate its headcount. These actions are being taken as Binance faces the most severe legal scrutiny it has encountered in its six-year history.
When approached by Decrypt, the world’s largest cryptocurrency exchange confirmed that staff layoffs had occurred but refrained from disclosing the exact number of employees affected.
In response to media reports, Binance CEO Changpeng ‘CZ’ Zhao took to Twitter to state that the reported numbers were inaccurate. However, The Wall Street Journal reported on Friday that the company had laid off over 1,000 employees. CNBC, citing an anonymous source, further claimed that Binance plans to let go of between 1,500 and 3,000 employees.
Previously, Binance had stated that its global headcount was 8,000 employees.
Today, Binance issued a statement reiterating what it had previously mentioned in May, stating that it was not “rightsizing” but rather reassessing whether it had the “right talent.”
A Binance spokesperson, speaking to Decrypt, acknowledged the layoffs but did not provide specific numbers. The CEO of the cryptocurrency behemoth tweeted on Friday that there were “involuntary terminations” while also asserting that the company was still actively hiring.
Back in May, journalist Colin Wu reported in a newsletter that Binance was already in the process of laying off staff, citing multiple sources. However, at the time, the exchange released a prepared statement focusing on the need to “focus on talent density” without confirming any staff cuts.
Binance’s decision to reduce its headcount comes as it faces investigations by various regulators and law enforcement agencies. In June, the U.S. Securities and Exchange Commission (SEC) filed 13 civil charges against Binance, its CEO Changpeng ‘CZ’ Zhao, and Binance US, which claims to be an independent entity. The SEC accused Binance and its CEO of exhibiting a “blatant disregard” for federal securities laws and profiting in the billions of dollars while jeopardizing investors’ assets.
Meanwhile, the U.S. Department of Justice has been investigating Binance for several years. The company recently retained the services of a prominent criminal defense attorney, George Canellos, a former co-director of the SEC’s Division of Enforcement, indicating the potential anticipation of forthcoming federal charges.
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