Binance Lays off Two Thirds of its Workforce

General News
2024-03-07 22:16:10

Binance.US has significantly reduced its workforce, cutting two-thirds of its employees due to a steep decline in revenue following a lawsuit by the Securities and Exchange Commission (SEC). The SEC's actions led to a substantial loss of institutional trust, according to Binance.US executive Christopher Blodgett during a recent court deposition.


Following the SEC's efforts to halt Binance.US operations with a Temporary Restraining Order (TRO), the platform experienced a dramatic outflow of $1 billion in assets. This mass withdrawal resulted in a 75% decrease in revenue and forced the company to lay off 200 employees. The downsizing has stretched the remaining workforce thin, hindering the company's ability to comply with SEC discovery requests.


Blodgett revealed the company's legal costs have surged to $10 million, while auditor expenses increased tenfold. Additionally, the loss of banking relationships has severely affected customer transactions, preventing fiat deposits and withdrawals and further crippling the exchange's operations.


The aftermath of the TRO has made it challenging for Binance.US to establish new banking partnerships, as financial institutions view the company unfavorably due to the ongoing legal battle. Blodgett expressed the difficult position the company finds itself in, stating, "To banks, we’re radioactive," highlighting the severe impact of the SEC's actions on Binance.US's business and reputation.

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