It appears that the crackdown on crypto firms by the United States Securities and Exchange Commission (SEC) has severely affected the business of Binance. During the past few weeks, the crypto exchange reportedly laid off more than 1,000 employees and cut some benefits.
According to Binance, the drop in profits was due to the “current market environment and regulatory environment,” which suggests further cutbacks may be in the works. A spokesperson told Cointelegraph that the company will consider reducing “certain products, business units, employee benefits and policies” in response to business and regulatory concerns.
Binance has so far faced 13 charges brought against it by courts and the SEC, as well as the fallout from an investigation by the US Department of Justice targeting its activities and executives.
Despite the prospects ahead, Binance is still the most popular centralized crypto exchange in the world, with over $63 billion in assets. A token breakdown by DiFillama shows that the majority of assets held on Binance include Tether (USDT) (27.55%), Bitcoin (BTC) (26.95%), BNB (BNB) (12.82%), and Wrapped Ether (10.08%).
In remarks marking Binance’s anniversary on July 14, Changpeng Zhao, the exchange’s CEO, recalled that the company’s journey “has never been smooth.”
Binance’s ongoing efforts to stem declining profits in the crypto biz this week, Ripple’s expectation that US banks may soon adopt XRP (XRP) and the first signs of venture capital returning to crypto.
Ripple CLO Says Court Ruling May Encourage Banks to Adopt XRP
Ripple Labs Chief Legal Officer Stu Alderotti believes that US-based banks may turn to XRP for cross-border transactions following the recent court ruling. “Hopefully this quarter there will be a lot of conversations with customers in the United States and hopefully some of those conversations will actually translate into real business,” he said during an interview. As the “security” label appears to no longer hang over XRP, the partnership between Ripple and banks hit by the SEC lawsuit could find new life. Bank of America was eyeing a blockchain company in 2019, and American Express first partnered with Ripple in 2017.
#New: President @PatrickMcHenry And @congressmangt Release a statement regarding the Court’s decision in SEC v. Ripple and the need for legislative clarity in the digital asset ecosystem to prevent further uncertainty in our financial markets.
Read more https://t.co/y1nITVmHvh pic.twitter.com/tn0dn0BDHd
– Financial Services GOP (@FinancialCmte) 14 July 2023
Binance Cuts Employee Benefits Citing ‘Drop Profits’
Global cryptocurrency exchange Binance is cutting some employee benefits amid reparations efforts at the firm. The company has reportedly stopped offering employees reimbursement for certain expenses including mobile phone access, fitness and working from home. Binance cited the “current market environment and regulatory environment” as the reason for the decline in profits, suggesting that more cost-cutting measures may be needed. The report comes after massive layoffs in June that affected more than 1,000 employees at the exchange. Both Binance and Zhao were targeted in a lawsuit by the SEC for allegedly offering unregistered securities in the United States.
Marathon shareholders filed a lawsuit against the company’s top management
Crypto mining company Marathon Digital is going to court over allegations that its CEO Fred Thiel, along with other top executives, violated fiduciary duties, unjustly enriched himself and squandered corporate assets. According to the complaint, the company’s management is downplaying its problems, artificially inflating Marathon’s valuation, receiving excessive compensation, engaging in lucrative insider sales, and receiving unreasonably inflated bonuses based on false and misleading statements.
Polychain Capital, Coinfund raise $350 million for new crypto fund
Web3 venture firms are gearing up for new investments in crypto projects as Polychain Capital raised $200 million for a new investment fund and Coinfund secured $152 million for a seed fund. Polychain still intends to raise a total of $400 million for the new fund. It currently operates three funds with approximately $2.6 billion in assets under management. As for Coinfund, its CEO Jake Brookman said the company had aimed to raise $125 million, but managed to raise an additional $27 million due to a resurgence of interest in the industry. The total amount of venture funding for crypto startups declined by 76% year-on-year due to the bearish market and industry turmoil.
July marks Coinfund’s 8th anniversary, celebrating its journey @jbrukh @flexthought And the team from the kitchen table to the hat table. We are thrilled to solidify this milestone with the announcement that Coinfund has closed its $158M Seed IV fund to support new internet leaders.
pic.twitter.com/6kwBFuIHiy— Coinfund (@coinfund_io) 18 July 2023
Before We Go: Bitcoin Rally Will Lead to “Speculative Shock Top” in 2024, Predicts Mark Yusko
According to Mark Yusko, chief investment officer and founder of Morgan Creek Capital, BlackRock’s application for a spot bitcoin exchange-traded fund has ushered in a new crypto bull market that will turn parabolic at some point near the halving scheduled for April 2024.
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