Cryptocurrency exchange Binance has cut jobs just days after it was hit by a wave of executive exits, a source conversant in the matter told Reuters on Friday.
The layoffs on the world’s biggest crypto exchange come at a time when the industry’s future within the US market is uncertain, with regulators aggressively clamping down on what they deem are illegal activities.
Last month, the Securities and Exchange Commission sued Binance and its CEO Changpeng Zhao for allegedly operating a “web of deception.” Binance has said it will defend itself “vigorously.”
The lawsuits against Binance and peer Coinbase Global underpin SEC Chair Gary Gensler’s tough approach towards the industry, but a US judge recently siding with crypto firm Ripple Labs highlights that the regulator is facing an uphill battle.
Applications for spot bitcoin exchange-traded funds from asset management giants BlackRock and Fidelity have also been viewed as a vote of confidence for the industry.
“During the last six years, now we have grown from 30 to a team of just about 8,000 across the globe. As we prepare for the subsequent major bull cycle, it has develop into clear that we’d like to deal with talent density across the organization to make sure we remain nimble and dynamic,” a spokesperson for Binance said.
The job cuts were first reported by the Wall Street Journal, which said greater than 1,000 people had been let go in recent weeks.
Last week, a string of executives quit Binance, which included its Chief Strategy Officer Patrick Hillmann.
