Binance, a cryptocurrency exchange, is taking steps to fire staff members as a reaction to a continuing Justice Department investigation. These steps are being taken in preparation for a consent decree or settlement, according to a current worker who is acquainted with the company’s plans. A source who wished to remain unnamed told CNBC that by the end of the year, Binance, a cryptocurrency marketplace, will have cut between 1,500 and 3,000 workers from its staff around the world.
The source also told the outlet that the 1,000 employee layoffs that had been previously announced and that were highlighted in Friday’s Wall Street Journal article are part of the overall projected decrease. Due to the delicate nature of the situation, the source asked to remain anonymous. According to the employee who talked with CNBC, the current Justice Department investigation is anticipated to significantly alter the company’s fundamental structure.
If Binance decides to settle the accusations with the DOJ, it might need a hefty monetary settlement worth billions of dollars. Federal investigators are reportedly investigating charges for money-laundering infractions and sanctions tax evasion, according to Reuters, which may make it difficult for Binance and its founder, Changpeng Zhao, to secure the licenses required for the company to continue operating. A representative for Binance disputed the claim that the cutbacks would affect 3,000 staff members, saying the greater number was unreliable and “just not right.
As we gear up for the next significant bull cycle, it is increasingly clear that we must concentrate on talent densities throughout the organization to make sure we continue to be nimble and dynamic,” the spokesman added. This is not a question of right-sizing, but rather of reassessing because we have the necessary talent and knowledge for key tasks.
Changpeng Zhao, the founder of Binance, has continually played off worries about the exchange’s viability despite being directly named in the SEC’s case. However, as a result of the legal proceedings taken by American regulators, Binance has suffered significantly. The exchange has experienced hundreds of millions in outflows, and numerous senior managers have left the organization.
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