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Category: Forex News

Binance US Cuts 200 Jobs Amid SEC Lawsuit Fallout

By Published On: March 6, 20241.2 min readViews: 5120 Comments on Binance US Cuts 200 Jobs Amid SEC Lawsuit Fallout

Contents

During a December deposition, Binance US COO Christopher Blodgett described the impacts of the ongoing SEC lawsuit on the company’s operations as a “near-mortal blow.” 

The firm has laid off more than 200 employees since June, doubling the previously reported figure. 

Blodgett articulated the strain in three key areas: people, trust, and economics. 

He also highlighted the significant severance and termination-related costs attached to this unfortunate outcome.

Prior reporting 

In September, Reuters reported the departure of Binance US CEO Brian Shroder and an initial round of layoffs affecting 100 employees, signaling operational challenges intensified by regulatory scrutiny. 

The interim CEO, Norman Reed, indicated that the restructuring provided a substantial financial runway for the company. 

Binance and its US affiliate have been staunch in their stance that they operate independently, despite SEC allegations of a “web of deception” aimed at circumventing securities laws.

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Binance’s legal woes 

Binance has been active on the legal front, challenging the SEC’s lawsuit and claiming the regulator has not met the legal requirements for their case. 

Specifically, Binance asserts that the SEC’s use of the “Howey Test” does not apply to their conduct. It has repeatedly emphasized that their customers’ engagement does not constitute an “investment contract.” 

This pushback forms part of a broader argument against what Binance perceives as regulatory overreach, with Reed, as interim CEO, previously accusing the SEC of hindering the growth of innovative financial technologies in a misguided attempt to regulate digital assets.




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