Binance lays off workers after executive exodus amid US lawsuit, but crypto giant is ‘still hiring’
- The world’s largest crypto exchange is cutting jobs days after the exit of multiple executives, including its chief strategy officer, a source told Reuters
- Initial reports of job cuts put the number as high as 1,000, but CEO Zhao Changpeng said the numbers are not accurate
Cryptocurrency exchange Binance has cut jobs just days after it was hit by a wave of executive exits, a source familiar with the matter told Reuters on Friday.
The lay-offs at the world’s biggest crypto exchange come at a time when the industry’s future in the US market is uncertain, with regulators aggressively clamping down on what they deem are illegal activities.
The job cuts were first reported by the Wall Street Journal, which said more than 1,000 people had been let go in recent weeks.
“As we continuously strive to increase talent density, there are involuntary terminations. This happens in every company. The numbers reported by media are all way off,” Binance CEO Zhao Changpeng tweeted, adding that the exchange is “still hiring”.
Last month, the Securities and Exchange Commission (SEC) sued Binance and Zhao for allegedly operating a “web of deception”. Binance has said it would defend itself vigorously.
The lawsuits against Binance and peer Coinbase Global underpin SEC Chair Gary Gensler’s tough approach towards the industry, but a US judge recently siding with crypto firm Ripple Labs highlights that the regulator is facing an uphill battle.
Applications for spot bitcoin exchange-traded funds (ETFs) from asset management giants BlackRock and Fidelity have also been viewed as a vote of confidence for the industry.