Binance.Us uses job cancellations, while it is preparing for a long and costly legal dispute with the SEC: Report
Binance.Us uses job cancellations, while it is preparing for a long and costly legal dispute with the SEC: Report
In a letter to the employee, Binance said that it would expect a lengthy and expensive legal dispute with the US stock exchange supervision SEC (Securities and Exchange Commission), and asked the management of Binance.us to reduce the workforce in the entire department.
The decision to cut jobs should be affected by around 50 employees.
job cuts at Binance.Us
In a Bloomberg report, it was found that a number of employees of the US subsidiary were released. While a company spokesman confirmed the layoffs, the exact number of employees affected by the decision was not mentioned.
In a Reuters report, however, it was stated that around 50 employees were affected.
At the beginning of this month, Binance gave that it will be cut off by the bank and payment partners. On June 9, the crypto exchange only served American customers Users to take off their dollar deposits in view of the "extremely aggressive and intimidating tactics" of the SEC.
Recently, Binance CEO Changpeng Zhao rejected the idea that the company had sold BTC and BNB, and described such rumors in social media as Fud. CZ claimed that the company even had a "bag full of financial transaction taxes".
in the crosshairs of the SEC
In its complaint dated June 5, the SEC asked the court to freeze the assets and the operation of binance.us. However, the authorities rejected the SEC's application on June 14th and asked Binance.Us and the agency to get in touch with each other and find a solution."A complete closure would not only have significant consequences for the company, but for the markets for digital assets in general.
These developments indicate that the sudden tightening of the attitude of the US regulatory authorities after the collapse of FTX in November 2022 finally caught up with the top actors in the industry. The US stock exchange supervision SEC submitted complaints against Binance and Coinbase on June 5th and 6th.
The Commission's allegations against the duo was that they acted as stock exchanges, broker dealers and clearing points without a corresponding license. Binance was accused of managing two non -registered securities - BNB and Busd - and mixed with customer funds. The SEC argued that Binance and Coinbase allow the trade in crypto tokens, which are not registered securities.
The regulatory authority wants the stock exchanges and tokens to comply with the guidelines applicable to securities. It means adhering to the rules and making sufficient disclosures that help investors reduce risks and make sound decisions.
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