• Binance.US has resorted to job cuts due to long and costly litigation with the SEC.
• The job cut decision is likely to affect about 50 employees.
• Recently, Binance CEO Changpeng Zhao dismissed rumors that the company sold BTC and BNB, affirming that it holds its “bag of FTT”.
Job Cuts at Binance.US
Binance’s US affiliate has recently laid off a number of employees, though the exact number is yet to be disclosed by a firm spokesperson. Reuters reported that approximately 50 staff members have been affected by the job-cut decision.
SEC Requests Court Freeze on Asset and Operations of Binance.US
On June 5, the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance.US requesting the court to freeze its assets and operations. This prompted Binance’s US division to suspend USD deposits for American customers on June 9, citing “extremely aggressive and intimidating tactics” from the regulator.
Binance CEO Denies Rumors About Company Selling BTC & BNB
Recently, Binance CEO Changpeng Zhao denied rumors circulating on social media that the company sold Bitcoin (BTC) and BNB tokens; asserting that it even holds its “bag of FTT” tokens as well. Thus far, neither side has commented in response to these reports or clarified whether any settlement can be reached between them soon or not.
Regulator Insists on Rulebook for Crypto Exchanges & Compliance with Security Laws
The SEC insists on exchanges having a rulebook for their compliance with security laws; which could prompt other crypto firms operating in America to take similar action in order to avoid being charged by the regulator as well as save costs related to compliance-related expenses in future lawsuits brought against them by authorities like the SEC or CFTC (Commodity Futures Trading Commission).
Conclusion
In conclusion, while it remains unclear whether any resolution will be reached between Binance and SEC soon enough; what is clear is that this situation may have further implications for other cryptocurrency companies operating in America if they are not prepared ahead of time when it comes to complying with security laws set forth by regulatory authorities like SEC or CFTC (Commodity Futures Trading Commission).
