Wednesday, December 7, 2022

Binance trying to raise funds despite US investigation

Binance US, the subsidiary of Binance, which is involved in major crypto exchanges, is trying to raise funds of about $ 50 million. Binance US was started about three years ago and has a market valuation of around $4.5 billion. The firm is being investigated by the US government.

The firm did not provide further details about this funding round. However, its Chief Executive Officer Brian Shroder has indicated about this. Shroder recently added Protocol Told Was that this funding would be announced soon. This will help Binance US to consolidate its position during the downturn in the crypto market. Many firms in this segment are facing difficulties due to the continuous selloff in cryptocurrencies over the past few months. To deal with this, some firms have started cost-cutting measures. These measures also include reducing the workforce.

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Crypto exchanges Bybit, Coinbase, BlockFi and Cryptocom have reduced their workforce. However, Binance US has no such plans. To allay the apprehensions among the employees about the fall in the market, Shroder has asked them to avoid such apprehensions and continue working. Earlier this month the US Securities and Exchange Commission (SEC) launched an investigation to determine whether Binance US is an integrated or a separate firm of its flagship organization Binance Global.

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Coinbase has decided to reduce its workforce by 18 percent due to a significant decline in the digital assets segment. Headquartered in the US, the firm says that it has taken this step to cut costs in this difficult period of the industry. The decision is expected to result in layoffs of over 1,000 employees of the exchange. Coinbase has given this information to the employees affected by this via email. The exchange has claimed to provide severance packages and health insurance to the employees being laid off. Earlier crypto trading and lending platform BlockFi had announced layoffs of around 200 employees and crypto exchange Crypto.com about 260 employees.

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