Binance lays off over 1,000 employees

© Reuters. FILE PHOTO: Binance logo is seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/File Photo

By Jaiveer Shekhawat

(Reuters) -Cryptocurrency exchange Binance has cut jobs just days after it was hit by a wave of executive exits, a source familiar with the matter told Reuters on Friday.

The layoffs at the world’s biggest crypto exchange come at a time when the industry’s future in the U.S. market is uncertain, with regulators aggressively clamping down on what they deem are illegal activities.

Last month, the Securities and Exchange Commission (SEC) sued Binance and its CEO Changpeng Zhao for allegedly operating a “web of deception.” Binance has said it would defend itself “vigorously.”

The lawsuits against Binance and peer Coinbase (NASDAQ:) Global underpin SEC Chair Gary Gensler’s tough approach towards the industry, but a U.S. judge recently siding with crypto firm Labs highlights that the regulator is facing an uphill battle.

Applications for spot bitcoin exchange-traded funds (ETFs) from asset management giants BlackRock (NYSE:) and Fidelity have also been viewed as a vote of confidence for the industry.

“Over the last six years, we have grown from 30 to a team of almost 8,000 across the globe. 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 spokesperson for Binance said.

The job cuts were first reported by the Wall Street Journal, which said more than 1,000 people had been let go in recent weeks.

Last week, a string of executives quit Binance, which included its Chief Strategy Officer Patrick Hillmann.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Investing.com – https://www.investing.com/news/economy/binance-lays-off-over-1000-employees-wsj-3126211