- Reuters reports that massive layoffs have taken place at the company.
- The SEC has also asked to freeze Binance.US assets, however, the court rejected.
After the US SEC filed a complaint against the crypto behemoth Binance.US last week for allegedly breaking federal securities laws, Reuters reports that massive layoffs have taken place at the company.
Reuters cites sources saying that since the lawsuit was filed, at least 50 workers have lost their jobs at Binance.US. According to the sources, the company has also laid off workers in the legal, compliance, and risk departments. The sources have asked to remain anonymous since this is a sensitive topic.
The Securities and Exchange Commission (SEC) filed a complaint against Binance and its CEO Changpeng Zhao on June 5 for allegedly engaging in “web of deception” to circumvent securities regulations. Binance, though, has promised to “vigorously” defend itself.
The SEC has also asked the court to freeze Binance US assets. The court, however, said earlier this week that a settlement between the parties would be in their best interests.
Robinhood Likely Gains
It has also come to light that a large number of retail crypto traders have recently migrated away from the cryptocurrency exchange Coinbase and over to Robinhood. Mizuho Securities analyst Dan Dolev claims that Coinbase may be losing ground to Robinhood in terms of retail crypto transaction volume.
Dolev argued that the rise in Coinbase’s retail trading fees for low-value items and the SEC’s measures against cryptocurrencies were not the only possible explanations for the drop.
Coinbase (COIN) shares fell by 5.5% on Thursday, following the trend of other cryptocurrency-related firms. The initial decrease was mitigated, however, maintaining a somewhat stable stock price. Despite this, Coinbase’s stock price has risen by around 50% so far in the year 2023.
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