Binance US, the US arm of Binance, will cut headcount following the SEC lawsuit.
Binance US notified its employees in an internal email following the SEC lawsuit. The company told its employees that layoffs would follow after the lawsuit.
Binance US Emailed Its Employees To Inform About The Post-SEC Litigation Process
Binance US has announced that it will reduce the number of employees after the lawsuit filed by the SEC. The company said in an email to employees that the SEC had put them in an “unfortunate situation.” It was stated that the SEC sanctions affecting Binance US’s relationship with its banking partners were the reason for the layoffs. A Binance US spokesperson confirmed that the layoffs had occurred, but did not specify the number of employees affected.
Binance US laid off employees after it decided to become a crypto-only exchange. Last week, the company announced to customers that it was “suspending USD deposits and banking partners are preparing to shut down fiat (USD) withdrawal channels as early as June 13.”
In the email, Binance stated that its board of directors is launching an initiative to “reduce the size of teams across the company and reduce the burn rate.” However, it was stated that “even though we worked to avoid this scenario, conditions have changed now”. While a timeline for the layoffs remains unclear, “the next few days and weeks are going to be tough,” the email said.
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