- An unconfirmed 50 people have already left the company
- Binance cites “extremely expensive” litigation
- Binance had previously committed $1 billion to “war” with the SEC
- Also the company hired the best, and therefore expensive, lawyers
Binance.US has recently laid off about 50 employees, 10% of its staff.. Management attributed this “cost optimization” to “extremely costly” litigation.
This was reported by Reuters, citing two company sources.. Also leaked to the media was an extract from a corporate letter to employees:
“In preparation for a multi-year and very costly lawsuit, the board has asked management to reduce the size of teams across our company.”</nbsp;
The statement also says that Binance.US tried to avoid such a scenario, but now see no other option.</nbsp;
SEC is listed in the letter as a “politically motivated regulator” that has forced the platform to become a “cryptocurrency-only exchange.”</nbsp;
Binance.US has not yet commented on the situation.. It is also unknown whether the wave of cuts only affected the U.S. branch or the parent company as well.
Worthy, earlier blogger BitBoy Crypto stated that Binance has allocated $1 billion to the litigation with the SEC. What’s more, the exchange hired some of Wall Street’s best lawyers.</nbsp;
How such a huge firm could not find the resources for its staff remains a mystery.