The largest cryptocurrency exchange Binance reportedly plans to lay off between 1,500 and 3,000 employees by the end of the year, according to an anonymous source cited by CNBC on July 14, 2023. This move is seen as a response to an ongoing investigation of the US Department of Justice and SEC.

Binance CEO Changpeng Zhao (C.Z.) responded to the news quickly in a tweet, stating

As we continually strive to increase talent density, involuntary layoffs do occur. This happens in all companies. The numbers reported by the media are far off. 4 FUD.

CZ also disputed the reported layoff numbers, calling them “far out” and attributing the inflated numbers to FUD (Fear, Uncertainty and Doubt) spread by the media.

Despite the layoffs, CZ emphasized that Binance is still in the hiring process. He highlighted the company’s ongoing efforts to increase “talent density” and expressed optimism about the future, noting that the continued media focus on Binance underscores its importance in the cryptocurrency industry.

The layoffs come as Binance faces severe regulatory hurdles. The exchange has come under the scrutiny of both the Commodity Futures Trading Commission and the US Securities and Exchange Commission due to allegations of improper treatment of client funds and running an exchange without license in the country.

Both regulatory challenges and the rapid growth of Binance have been defining features of the company’s history. The exchange started operating in 2017, then quickly rose to fame, expanding to become the largest cryptocurrency exchange in 2019.

There has previously been speculation of layoffs at Binance as a result of a sharp decline in trading volume and regulatory concerns.

On June 6, 2023, Binance co-founder He Yi vehemently denied that the entire BNB team will be fired.

On June 1, 2023, according to unnamed sources and a 20% drawdown estimate, cryptocurrency writer Colin Wu was the first to break the news of possible layoffs. CZ responded by calling these allegations “FUD” and highlighting the fact that Binance has maintained a profit since its fourth month of operation, even through two crypto winters.