Binance.US reduces staff due to costly SEC lawsuit.

Binance.US, which is a U.S.-based branch of the cryptocurrency exchange Binance, has terminated the employment of some of its staff just one week after both entities were sued by the United States Securities and Exchange Commission (SEC). According to documents that blockchain has had access to, the SEC was characterized as a “politically motivated regulator” that compelled Binance.US to only operate as a “crypto-only exchange”.

The documents stated, “As part of this transition, and because of our preparation for a multi-year and very costly litigation process, the Board has asked Management to shrink the size of our teams across the company and reduce our burn rate. Unlike every other U.S. crypto company, we have been working to avoid this scenario, but circumstances have now shifted. This was a very hard decision – one that we didn’t take lightly. We are sad to see our colleagues depart, but we wish them the best and will do what we can to assist them in this transition”.

Reports from Reuters indicate that approximately 50 positions were eliminated. The LinkedIn page of Binance.US shows that the company had 487 employees.

Last week, the SEC sued Binance.US, Binance, and its founder and CEO Changpeng “CZ” Zhao, claiming that they offered unregistered securities to the public. The SEC also requested a temporary restraining order to block assets linked to Binance.US, but a judge denied the order on Thursday, and the exchange can continue to conduct business in the United States.

Edited by Stephen Alpher.

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