Binance, the world’s largest cryptocurrency exchange, has reportedly laid off employees following a recent wave of executive exits, according to a source familiar with the matter. The layoffs come at a time when the future of the cryptocurrency industry in the U.S. market is uncertain, with regulators cracking down on what they perceive to be illegal activities.
The Wall Street Journal initially reported the job cuts, stating that over 1,000 employees had been let go in recent weeks. Binance CEO Changpeng Zhao took to Twitter to address the layoffs, stating that “involuntary terminations” occur in every company and that the numbers reported by the media were inaccurate. Zhao also mentioned that Binance is still actively hiring.
This development follows a lawsuit by the U.S. Securities and Exchange Commission (SEC) against Binance and Zhao, alleging the operation of a “web of deception.” Binance has vowed to vigorously defend itself against these allegations. The lawsuits against Binance, as well as its competitor Coinbase Global, highlight SEC Chair Gary Gensler’s tough stance on the cryptocurrency industry. However, a recent ruling in favor of crypto firm Ripple Labs suggests that the regulator could face challenges in its enforcement actions.
Despite regulatory scrutiny, the industry has received some positive signals. Asset management giants BlackRock and Fidelity have applied for spot bitcoin exchange-traded funds (ETFs), which is seen as a vote of confidence for the industry.
In response to the layoffs, a spokesperson for Binance stated that as the company prepares for the next major bull cycle, it is focusing on talent density to remain agile. Over the past six years, Binance has grown from a team of 30 to nearly 8,000 employees worldwide.
Last week, a series of executives, including Binance’s Chief Strategy Officer Patrick Hillmann, departed from the company. The reasons behind the executive exits remain undisclosed.
Binance’s layoffs and executive departures indicate a challenging period for the cryptocurrency exchange. As the cryptocurrency industry faces increased regulatory scrutiny, Binance and other companies in the sector must navigate a changing landscape to maintain their operations.
Reporting by Kanjyik Ghosh, Jaiveer Shekhawat, and Pritam Biswas in Bengaluru; Editing by Shailesh Kuber.