Binance Lays Off Dozens of Employees With Plans To Trim US Workforce Amid Regulatory Pressure

The world’s largest crypto exchange by trading volume is reportedly downsizing amid mounting pressure from federal investigations.

The Wall Street Journal reports that Binance already terminated dozens of its employees last week, some of whom were told their jobs were redundant while others were let go without any reason at all.

The report also says the firm 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 for compliance Steven Christie already departed.

Binance CEO Changpeng Zhao says there is turnover at every company and denies reports claiming that the resignations are due to how he handled an ongoing investigation by the U.S. Department of Justice (DOJ).

“More FUD (fear, uncertainty, and doubt) about some departures. Yes, there is turnover (at every company). But the reasons dreamed up by the ‘news’ are completely wrong. As markets and the global environment for crypto changes, as our organization evolves, and as personal situations change, there is turnover at every company.”

Citing a former Binance employee, the report says Binance executives worry that the Justice Department will file criminal charges against the firm and its top executive. Still, Zhao refuses to step down, which many in the firm believe could threaten the company’s survival, according to the unnamed source.

The employee says issues at the company partly stem from concerns that the DOJ taking legal action would render the efforts of the executives to save Binance’s reputation useless.

Last month, two US Senators reportedly asked the DOJ to probe the top crypto exchange for allegedly lying to Congress.

Also in June, the U.S. Securities and Exchange Commission (SEC) sued Binance and its CEO Zhao for allegedly violating securities laws along with other accusations.