The U.S. affiliate of crypto giant Binance has laid off employees in a number of departments, including legal, compliance, and risk, following an investigation by the Securities and Exchange Commission (SEC).
According to two people with knowledge of the layoffs, around 50 employees were let go. The SEC has accused Binance and its founder and CEO Changpeng Zhao of creating Binance.US as part of a “web of deception” to evade securities laws aimed at protecting U.S. investors. Binance has denied the allegations.
The layoffs come at a time when the crypto industry is facing increased scrutiny from regulators around the world. The SEC has been particularly aggressive in its enforcement of securities laws in the crypto space, and Binance is one of the largest exchanges to be targeted by the agency.
The layoffs could have a significant impact on Binance.US’s ability to operate and compete in the U.S. market. The exchange has already been forced to limit its services to U.S. customers, and the layoffs could make it even more difficult for the company to comply with regulatory requirements.
It remains to be seen how the SEC investigation will be resolved, but the layoffs are a sign that the agency is taking its enforcement efforts seriously. The crypto industry is likely to face more scrutiny from regulators in the coming months, and other exchanges could be forced to make similar layoffs.