Over 1,000 Workers Are Fired by Binance
According to reports, Binance has let go of over a thousand workers in the last several weeks, cutting its worldwide workforce of 8,000 even less. The Wall Street Journal (WSJ) was notified by former staff that the exchange has fired more people this week, primarily from its customer-service division, throughout its global markets. Roughly forty employees in this class were fired in India alone, according to sources.
The retrenchment happens as regulatory pressure on Binance—which recently saw the departure of senior executives—keeps increasing. It is said that about fifty employees of the exchange’s purported independent US affiliate were let off. However, Changpeng “CZ” Zhao, the CEO of Binance, refuted reports of issues at the exchange in response to the resignation of former Chief Strategy Officer Patrick Hillmann and other important executives, stating that “there is turnover at every company.”
Hillman refuted allegations in May that stated Binance was laying off 20% of its staff as a “cost-cutting measure,” stating that the exchange was simply going through its routine “talent density audit and resource allocation” process.
Currently, Binance is fighting back against accusations that were made in early June by the US Securities and Exchange Commission (SEC). According to the authorities, the exchange misappropriated client funds and operated unregulated trading platforms. According to WSJ, the cryptocurrency exchange is also concerned about possible charges from the US Department of Justice.
Binance has experienced a number of setbacks in the last month, including being kicked out of Belgium, having its licences in Germany and the Netherlands denied, and losing its partner in euro banking. A senator has called for a congressional investigation against the company’s agent in Brazil, and the exchange is now being looked by in France. Notwithstanding these difficulties, Binance just made its debut in Kazakhstan, becoming the company’s first foothold in the Central Asian subregion.