Binance Cuts Over 1,000 Jobs As Crypto Exchange Faces Regulatory Hurdles

Binance, one of the world’s largest cryptocurrency exchanges, has reportedly laid off over 1,000 employees in recent weeks, marking a significant reduction in its global workforce, raising questions about the exchange’s future.

The layoffs, which are still ongoing, could result in Binance losing more than a third of its staff, according to a source familiar with the matter. The cuts have been widespread, affecting various departments including customer service, particularly in India where around three dozen employees were let go. This news comes amid a series of regulatory actions against the company by U.S. authorities.

As reported by The Wall Street Journal, the layoffs and resignations have been taking place globally, including in the U.S., but the full extent of the cuts was not previously known. A Binance spokesperson confirmed the layoffs, but did not disclose the exact number.

The spokesperson stated, “As we prepare for the next major bull cycle, it has become clear that we need to focus on talent density across the organization to ensure we remain nimble and dynamic.” This move comes as Binance faces increasing scrutiny from regulators, particularly in the U.S. and Europe.

Bitcoin BTC/USD lost 2.4% on Friday, marking its worst session in over a month. The total cryptocurrency market cap was $1.18 trillion, a 2.7% decrease for the day.

Also Read: The Rise and Fall of Crypto Jobs: How the $180B Sector Breaks Down

Binance’s Legal Challenges And DOJ Investigation

The Securities and Exchange Commission (SEC) sued Binance and its founder, Changpeng Zhao, in June, alleging they illegally operated in the U.S. and misused customer funds. Binance has denied these allegations.

However, the company’s biggest challenge is an ongoing investigation by the Justice Department. There are concerns within the company that the DOJ may file charges against the firm and Zhao, which could put Binance’s survival into question.

Company Response And High-Profile Exits

Amid these fears, Binance decided to eliminate any physical presence in the U.S., resulting in the relocation or layoff of about 150 employees. The company also faced a series of high-profile exits, including the company’s general counsel, chief strategy officer, and head of investigations. Despite these challenges, Binance celebrated its six-year anniversary on Friday, expressing optimism for the future in a tweet message.

Binance.US, a separate exchange in the U.S., has also been facing its own challenges. After the SEC lawsuit, its market share took a significant hit. Despite these setbacks, a Binance spokesperson says the company remains committed to its mission and is preparing for the next major bull cycle in the cryptocurrency market.

Now Read: Ripple’s Legal Tussle With SEC Sparks Debate in Crypto Community, Verdict Triggers Rally in XRP

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo: Web Summit on flickr.