- According to unconfirmed reports, the company has already left 50 people
- Management cited ‘extremely costly’ lawsuit
- Prior to this, Binance allocated $ 1 billion for the “war” with the SEC
- The company also hired the best and, consequently, expensive lawyers.
Recently, about 50 employees have been laid off at Binance.US, which is 10% of the state. The management explained this “cost optimization” as an “extremely expensive” lawsuit.
The portal reports Reuters citing two sources within the company. Also, an extract from a corporate letter to employees was leaked to the media:
“In preparation for a years-long and very costly lawsuit, the board of directors has asked management to reduce the size of teams across our company.”
The appeal also says that Binance.US tried to avoid such a scenario, but now they see no other way out.
The SEC is described in the letter as a “politically motivated regulator” that forced the platform to become “an exchange solely for cryptocurrencies.”
Binance.US has not yet commented on the situation. It is also unknown whether the wave of cuts affected only the US subsidiary or the parent company too.
It is noteworthy that earlier blogger BitBoy Crypto stated that Binance allocated $1 billion for litigation with the SEC. Moreover, the exchange hired the best lawyers from Wall Street.
How in such a case such a huge company did not find the resources for its staff remains a mystery.