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During a <a href="https://twitter.com/leomschwartz/status/1765090442310230153" rel="noopener noreferrer nofollow">December deposition</a>, Binance US COO Christopher Blodgett described the impacts of the ongoing SEC lawsuit on the company's operations as a "near-mortal blow."&nbsp;
The firm has laid off more than 200 employees since June, doubling the previously reported figure.&nbsp;
Blodgett articulated the strain in three key areas: people, trust, and economics.&nbsp;
He also highlighted the significant severance and termination-related costs attached to this unfortunate outcome.
<h2 id="prior-reporting">Prior reporting&nbsp;</h2>
In September, Reuters reported the departure of Binance US CEO Brian Shroder and an initial round of layoffs affecting 100 employees, signaling operational challenges intensified by regulatory scrutiny.&nbsp;
The interim CEO, Norman Reed, indicated that the restructuring provided a substantial financial runway for the company.&nbsp;
Binance and its US affiliate have been staunch in their stance that they operate independently, despite SEC allegations of a "web of deception" aimed at circumventing securities laws.
<h2 id="binance-s-legal-woes">Binance’s legal woes&nbsp;</h2>
Binance has been <a href="https://u.today/cz-and-binance-submit-oppositions-in-sec-lawsuit" rel="noopener noreferrer nofollow">active</a> on the legal front, challenging the SEC's lawsuit and claiming the regulator has not met the legal requirements for their case.&nbsp;
Specifically, Binance asserts that the SEC's use of the “Howey Test” does not apply to their conduct. It has repeatedly emphasized that their customers' engagement does not constitute an "investment contract."&nbsp;
This pushback forms part of a broader argument against what Binance perceives as regulatory overreach, with Reed, as interim CEO, previously accusing the SEC of hindering the growth of innovative financial technologies in a misguided attempt to regulate digital assets.

Binance US Cuts 200 Jobs Amid SEC Lawsuit Fallout

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