According to a recent report, Binance.US has made a number of significant layoffs after the US SEC filed a complaint against the crypto giant last week, alleging that it had broken the nation’s securities laws.
According to sources acquainted with the situation, Binance.US has fired at least 50 employees as a result of the litigation.
The sources also said that workers in Binance’s legal, compliance and hazards departments had lost their jobs. Since the situation is confidential, the sources have asked to remain anonymous.
The SEC filed a complaint against Binance and its CEO Changpeng Zhao earlier this month on June 5 for weaving a “web of fraud” to avoid securities regulations. Binance, on the other hand, has vowed to “vigorously” protect itself in the situation.
Additionally, the SEC had asked for the funds of Binance to be frozen by the court. US noting the potential for financial loss. The judge, however, rejected the plan earlier this week and added that an agreement between the parties was in the best interests of both sides.
In a related event, it appears that a herd of retail cryptocurrency traders has been relocating their operations from the cryptocurrency exchange Coinbase to Robinhood. According to Dan Dolev, an analyst at Mizuho Securities, Robinhood may be gaining market share from Coinbase in terms of retail cryptocurrency transaction volume.
In Dolev’s words, “there is no ideal reason for prospective share losses other from concerns about regulatory demands given SEC activities against crypto, or the rise in small-ticket item retail trading costs at Coinbase.”
Dolev’s study of the shareholder letter from Coinbase and the monthly metrics report from Robinhood suggests that either Coinbase is losing market share to Robinhood or that their take rates, the amount of money they make from each transaction have dropped. Dolev cautions against making the assumption that retail take rates stayed the same or went down.
The initial loss in Coinbase (NASDAQ: COIN) shares on Thursday was 5.5% as a result of a widespread decline in stocks associated with cryptocurrencies. The stock, though, essentially remained steady as the decline was later controlled.
Despite this, shares of Coinbase have grown by about 50% this year. The stock price of Robinhood fluctuated insignificantly between profits and losses.
