The US arm of crypto exchange giant Binance has decided to cut jobs. Meanwhile FTX’s founder Sam Bankman-Fried to only face original charges for now.
In recent developments, the US arm of the crypto exchange giant Binance has decided to cut jobs following SEC charges. This comes after a Washington Court rejected SEC’s plea to freeze the assets of Binance.US this week.
US Binance cuts staff amid SEC lawsuit
The US affiliate of Binance has decided to cut its workforce as the legal battle with the Securities Exchange Commission continues. Anonymous sources reported that the number of people laid off were around 50.
It was also reported that the US.Binance CEO Brian Shorder wrote in an email to staff that in order to prepare for the long and costly legal battle with the SEC, the board has asked the management to reduce the size of the organization.
CEO Shroder wrote that the company has avoided layoffs in the past, but the SEC and banking partners have made them do so. Two employees confirmed the reports of staff cuts on LinkedIn by addressing that they are leaving the company.
Washington D.C. court rejects SEC’s plea to freeze Binance US assets
Earlier this week, a judge in Washington rejected the SEC’s plea to freeze the assets of the US arm of the company, and asked both of them to negotiate a way out.
Amy Berman Jackson, judge of a Washington court said that there is “absolutely no need” for a temporary freeze order. Representatives of Binance US said that they are unwilling to accept a “death penalty” in the form of an asset freeze of the US affiliate of the company.
Jennifer Farer, an SEC lawyer also agreed that they are open to let the crypto exchange operate. Farer also alleged that Binance is constantly changing their statements on how the assets and funds were managed by the company.
Last week the SEC had filed a 13 charges lawsuit against Binance US, Binance CEO Changpeng Zhao and parent company BAM management alleging that they inflated trading volumes by using a second company owned by Changpeng Zhao.
Sam Bankman-Fried (SBF) to be trialed on only original charges for now
FTX and Alamada Research founder, Sam Bankman-Fried finally got some relief in his long trial as the additional charges on him were withdrawn this week.
The criminal trial for the FTX founder has been reduced to original 8 charges levied in December 2022. However, the additional charges may be run as a separate trial stretching throughout the year, after the current trial is completed.
Sam Bankman-Fried had filed a motion stating that many of the charges levied on him currently were not a part of the original indictment. The prosecutors responded that they are ready to continue the trial on the charges of the original indictment.
The prosecutors also said that it seems that the lawsuit will take more time and may extend even after the trial date. Sam Bankman-Fried was charged in December 2022 in connection with the FTX crypto exchange bankruptcy and has been facing trial since then.