Binance, the largest crypto exchange by trading volume, cut certain employee benefits, including mobile-phone reimbursement, fitness reimbursement, and work-from-home expenses, due to a fall in profits. In an internal message, the firm said the current market environment and regulatory climate caused a decline in profit, forcing it to be more prudent with spending. Recent reports also showed that Binance laid off more than a third of its headcount, representing over 1,000 employees worldwide, after facing regulatory hurdles in the U.S. - Former employees stated that several hundred additional customer service employees were also let go last week.
- In termination agreements, Binance required former employees to keep the terms of the document confidential, relinquish any claims against the company, and not make any negative statements about Binance.
- The cut in the employee number and benefits came shortly after the U.S. Securities and Exchange Commission (SEC) filed a 136-page complaint against Binance and CEO Changpeng Zhao (CZ) over alleged U.S. law violations.
- However, in a recent company meeting, Zhao told employees that the company is still profitable and not affected by the SEC's lawsuit.
- Binance CEO also added that he was not sure if and when benefits would be restored, and there could be additional layoffs every three to six months.
In the U.S., Binance is also under scrutiny by the Commodity Futures Trading Commission (CFTC), the Internal Revenue Service (IRS), and federal prosecutors. - Over the last several months, the platform faced similar regulatory challenges in many other countries, including Australia, France, and Belgium, mainly due to compliance issues.
- Besides, the company recently had to withdraw from several markets in the West, including Canada, the Netherlands, Cyprus, and the U.K.
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