The U.S. Securities and Alternate Price (SEC) lawsuit against Binance.US put the crypto alternate in a difficult location, resulting in workers cuts to put collectively for “expensive litigation,” mentioned the company’s administration in an electronic mail to workers on Thursday.

“The pass to was a crypto-simplest alternate modified into once no longer a call but slightly a circumstance pushed by a politically motivated regulator,” mentioned Binance.US administration in the electronic mail viewed by CoinDesk.

As segment of this transition, the administration group mentioned it has obtained directions from the board to shrink the measurement of teams everywhere in the firm and lower the burn rate. The alternate’s administration additionally mentioned it’s miles making ready for “a multi-one year and the truth is costly litigation direction of.”

“Unlike every assorted U.S. crypto firm, we beget been working to steer clear of this scenario, but conditions beget now shifted. This modified into once a extraordinarily hard decision – particular person that we didn’t take evenly,” read the electronic mail.

“We are unhappy to peep our colleagues leave, but we wish them doubtlessly the most inviting and can raise out what we are in a position to to relief them in this transition.”

Sources with information of the matter educated Reuters that around 50 workers had been laid off in the technique. Binance.US workers working in correct, compliance and chance departments had been reportedly among those dismissed. Binance.US’s LinkedIn page exhibits that the firm has about 500 workers, suggesting a 10% reduction.

Last month, Binance’s senior executives addressed studies that the world alternate planned to gash around 20% of its 8,000 workers in the month of June. Binance’s chief communications officer Patrick Hillmann described the workers cuts as a routine “expertise density audit,” announcing that streamlining its crew has been a segment of “Binance’s secret sauce.”

Binance CEO Changpeng Zhao additionally weighed in on Crypto Twitter then, explaining that the alternate continually lets journey of those who’re no longer a good match for the firm’s custom, irrespective of how they construct at work.