Coindesk Logo

Binance.US Cuts Staff After SEC Suit, Citing ‘Very Costly Litigation Process’

Binance.US Cuts Staff After SEC Suit, Citing ‘Very Costly Litigation Process’

Binance.US Cuts Staff After SEC Suit, Citing ‘Very Costly Litigation Process’

Reports suggest about 10% of the company’s employees were laid off.

Reports suggest about 10% of the company’s employees were laid off.

Reports suggest about 10% of the company’s employees were laid off.

AccessTimeIconJun 15, 2023, 6:53 PM
Updated Jun 15, 2023, 8:01 PM

Binance.US CEO Brian Shroder (Binance.US)

10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Binance.US, the U.S. affiliate of crypto exchange Binance, has laid off part of its staff roughly one week after the U.S. Securities and Exchange Commission (SEC) filed lawsuits against both entities.

In documents seen by CoinDesk, management described the SEC as a “politically motivated regulator” that forced it to become a “crypto-only exchange.”

“As part of this transition, and because of our preparation for a multi-year and very costly litigation process, the Board has asked Management to shrink the size of our teams across the company and reduce our burn rate,” read the documents. “Unlike every other U.S. crypto company, we have been working to avoid this scenario, but circumstances have now shifted. This was a very hard decision – one that we didn’t take lightly. We are sad to see our colleagues depart, but we wish them the best and will do what we can to assist them in this transition.”

According to a report from Reuters, about 50 positions were cut. Binance.US’s LinkedIn page shows the company with 487 employees.

The SEC last week sued Binance.US, along with Binance and founder and CEO Changpeng “CZ” Zhao on allegations of offering unregistered securities to the general public. It also sought a temporary restraining order to freeze assets tied to Binance.US, but a judge on Thursday declined the order, allowing the exchange to continue doing business in the U.S.

Edited by Stephen Alpher.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Helene is a New York-based news reporter at CoinDesk, currently covering the criminal trial of infamous crypto mogul Sam Bankman-Fried. Helene is a recent graduate of New York University's business and economic reporting program and has appeared on CBS News and Nasdaq TradeTalks. She holds BTC and ETH.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.