Binance US said it has made mass layoffs since regulators accused the company of violating securities laws last week and tried to freeze its assets, Reuters citing its own sources.
One source said about 50 people were laid off. Reuters was unable to independently verify the number or seniority of employees affected.
People who spoke to Reuters said employees in Binance.US' legal, compliance and risk departments were among those laid off, and sources did not want their names to be disclosed because the matter was confidential.
On June 5, the SEC accused Binance and its founder and CEO, Changpeng Zhao, of creating Binance.US as part of a "deception network" to evade securities laws aimed at protecting US investors. The company said it would defend itself "vigorously".
The SEC also sued BAM Trading, the operating company of Binance.US, for allegedly misleading investors about "non-existent trading" controls on its platform.
A day later, the SEC requested a federal court to freeze the assets of Binance.US, including more than $2.2 billion held in cryptocurrencies and approximately $377 million held in US dollar bank accounts. The SEC has expressed concerns that the exchange may move these funds offshore.
The company, on the other hand, described the request as "unfounded" and said the SEC's claims were "unjustified". Ultimately, the judge decided not to freeze Binance US's assets in the current situation.
*Not investment advice.