Binance, the giant cryptocurrency exchange, is laying off more than 1,000 employees amid a federal crackdown in the United States.
More than 1,000 people have been fired in recent weeks, while the Justice Department continues its investigation, according to a source familiar with the decision who spoke to the Wall Street Journal.
The source added that the move by Binance could result in the crypto exchange cutting more than a third of its staff.
LISBON, PORTUGAL – NOVEMBER 01: Changpeng Zhao, commonly known as “CZ”, founder and CEO of Binance, the world’s largest cryptocurrency exchange by trading volume as of July 2022. (Photo by Horacio Villalobos#Corbis/Getty Images)
Former Binance employees added that more staffers were laid off this week, and that customer-service workers were heavily affected. They added that the layoffs were global, and included about three dozen customer-service employees in India.
“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,” a Binance spokesman told the Wall Street Journal.
“This is not a case of rightsizing, but rather, re-evaluating whether we have the right talent and expertise in critical roles,” added the spokesperson, who declined to say how many employees were being let go.
Before the layoffs, Binance had a global staff of 8,000, the report noted.
Binance is being targeted by U.S. regulators, who have been trying to control the crypto industry for the past few months. In June, the Securities and Exchange Commission sued the company and its founder, Changpeng Zhao.
The federal agency claims Binance and its founder illegally operated in the U.S. and misused customer funds, among other things. The crypto exchange is also the subject of a continuing investigation by the Justice Department.
Meanwhile, Zhao has refused to give up control or step aside, and many inside the company do not agree with that move, as they believe it could put an end to Binance, sources told the Journal.
Several high-profile employees have also recently left, including Binance’s general counsel, chief strategy officer, and head of investigations.
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