Author: Katherine Ross, Blockworks; Translation: Song Xue, LianGuai
According to reports, both Binance and Binance.US are facing layoffs and executive departures, as the cryptocurrency exchange is under investigation by the Department of Justice and facing a lawsuit from the U.S. Securities and Exchange Commission (SEC).
The Wall Street Journal reported on Tuesday that the Department of Justice is still conducting its investigation and may ultimately bring criminal charges against Binance and CEO Changpeng Zhao.
The SEC, in a lawsuit filed in June, accused the cryptocurrency exchange of violating securities laws and commingling customer funds. Binance has refuted the allegations of commingling funds.
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As part of the report, The Wall Street Journal stated that prior to his departure, former CEO of Binance.US Brian Shorder said the exchange’s revenue has dropped 70% this year. Zhao will need to sell his shares or place his assets in a blind trust. The report also mentioned discussions around Zhao’s resignation as the helm of Binance.
“As a rapidly growing company in an emerging and complex industry, Binance has not been without its mistakes. We tirelessly strive to ensure the sustainability of the entire crypto/web3 ecosystem, not only by learning from the past, but also by continuing to invest in teams and systems that ensure user protection,” a Binance spokesperson said via email.
“We have made significant investments in compliance talent, processes, and technology, and remain focused on building industry-leading global compliance and enforcement assistance programs.”
In a post, Zhao refuted the comments about executive departures, stating that only one employee who directly reported to him had left in the past year.
“Furthermore, while many of our former team members were very strong, changes are not always a bad thing […] we keep the team dynamic to increase growth opportunities,” he added.
According to reports, in addition to the legal uncertainties faced by Binance and Binance.US, the multinational company is also considering exiting Russia.
Binance reportedly told The Wall Street Journal in August, “All options are being considered, including a complete exit.” Binance stated that it is working to comply with international sanctions after reports emerged that it had helped nationals move funds abroad.
Last April, Binance closed personal accounts linked to Russian officials.
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