The world’s largest crypto exchange by trading volume is reportedly shrinking due to mounting pressure from federal investigations.
The Wall Street Journal reports that Binance already laid off dozens of employees last week, some of whom were told their jobs were redundant, while others were fired for no reason at all.
The report also says the company has plans to reduce its US-based workforce.
Some of the company’s top executives, including general counsel Hon Ng, chief strategy officer Patrick Hillmann and senior vice president of compliance Steven Christie, have already left.
Binance CEO Changpeng Zhao say there is turnover at every company and denying reports claiming the layoffs are due to the way he handled an ongoing investigation by the US Department of Justice (DOJ).
“More FUD (fear, uncertainty and doubt) about some of the departures. Yes, there is turnover (at every company). But the reasons that the ‘news’ have come up with are not correct at all.
As markets and the global environment for crypto change, as our organization evolves and personal situations change, there is revenue at every company.
Citing a former Binance employee, the report says Binance executives are concerned that the Justice Department will file criminal charges against the company and its top executive. Still, Zhao refuses to step down, which many in the company believe could jeopardize the company’s survival, the unnamed source said.
The employee says the company’s problems stem in part from concerns that the DOJ would take legal action to render futile the executives’ efforts to salvage Binance’s reputation.
Last month, two US senators reportedly asked the DOJ to investigate the major crypto exchange for alleged lying to Congress.
Also in June, the US Securities and Exchange Commission (SEC) indicted Binance and its CEO Zhao for allegedly violating securities laws and other allegations.
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