According to The Wall Street Journal, Binance, the leading cryptocurrency exchange in terms of trading volume, is reportedly undergoing downsizing as it faces increasing pressure from federal investigations.
The company has recently terminated several employees, with some being informed that their positions were redundant, while others were let go without clear explanations.
The report further reveals that Binance has strategic plans to reduce its workforce based in the United States. Several high-ranking executives, including General Counsel Hon Ng, Chief Strategy Officer Patrick Hillmann, and Senior Vice President for Compliance Steven Christie, have already left the company.
While acknowledging the regular turnover within any organization, Binance CEO Changpeng Zhao denies allegations that the departures are directly linked to his handling of the ongoing investigation conducted by the U.S. Department of Justice (DOJ). He dismisses the speculation as fear, uncertainty, and doubt (FUD) spread by the news outlets:
“There is always some turnover in every company. However, the reasons concocted by the ‘news’ are entirely unfounded. As the cryptocurrency market and global landscape evolve, as our organization adapts, and as personal circumstances change, turnover is a natural part of any company.”
Citing an anonymous former employee, the report indicates that Binance executives are concerned about potential criminal charges from the Justice Department targeting both the company and its top executive. Despite these concerns, Zhao remains steadfast in his position, which some insiders fear could jeopardize the company’s survival.
The employee also reveals that issues within the company stem, in part, from fears that legal actions by the DOJ would undermine the efforts made by executives to salvage Binance’s reputation.
In recent events, two U.S. Senators reportedly called for a DOJ investigation into Binance, accusing the exchange of providing false information to Congress. Additionally, in June, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance and CEO Zhao, alleging violations of securities laws and making various other accusations.
