- The US affiliate of Binance conducted a round of layoffs following SEC charges and asset freeze threats.
- The SEC accused Binance and CEO Changpeng Zhao of creating Binance.US to evade securities laws.
- Binance.US’ assets, including over $2.2 billion in crypto, were targeted for a freeze by the SEC.
In a significant development, Binance’s US affiliate, one of the prominent entities in the crypto world, has made sweeping layoffs. The move comes in the wake of charges from the Securities and Exchange Commission (SEC) alleging violations of securities laws and attempts to freeze its assets, Reuters reports.
The SEC’s accusations extend to Binance and its founder and CEO, Changpeng Zhao. The regulatory body has claimed that Binance.US was created as part of a complex web of deception to circumvent securities laws designed to protect American investors. Despite the strong-worded allegations, Binance maintains a solid front, vowing to defend itself vigorously against these charges.
The SEC has not stopped at accusations alone. The agency also targeted Binance.US’ operating company, BAM Trading. The charge here is that BAM Trading deceived investors about the non-existent trading controls over its platform.
In an escalating legal conflict, the SEC sought to freeze Binance.US’ assets a day after the lawsuit. The frozen assets would include more than $2.2 billion in cryptocurrencies and about $377 million in US dollar bank accounts. The SEC voiced its concern over the possibility of the exchange moving these funds offshore.
Binance.US, however, has dismissed these allegations as unjustified, labeling the asset freeze request as unwarranted. The turmoil has already impacted the company internally, with employees announcing their departure on LinkedIn.
As the future unfolds, Binance US is poised at a critical juncture in the crypto industry. The outcome of the SEC lawsuit could potentially influence the company’s trajectory and shape the wider regulatory landscape for cryptocurrency businesses in the United States.
