%Cryptocurrency exchange %Binance has begun firing staff at its U.S. affiliate a week after the U.S. Securities and Exchange Commission (SEC) charged the company with violating American securities laws.
The SEC has also sought to freeze Binance’s assets pending an upcoming court battle. Binance has adamantly denied the Wall Street regulators charges and vowed to vigorously fight them.
Media reports say that Binance has terminated 50 people at its U.S. operations. The company has declined to comment on internal matters.
However, according to news reports, employees in Binance.US’ legal, compliance and risk departments were among the people let go.
The firings come after the SEC on June 5 accused Binance and its founder Changpeng Zhao (CZ) of creating Binance.US to evade securities laws aimed at protecting U.S. investors.
The SEC also sued Binance.US’ operating company, BAM Trading, alleging that it misled investors about controls on its platform meant to protect investors.
The regulator has since asked a federal court to freeze Binance.US’ assets, including more than $2.2 billion U.S. held in cryptocurrencies and $377 million U.S. of cash lying in customer bank accounts.
The SEC said it is concerned Binance will move its funds offshore and out of the reach of American authorities. Binance called the SEC request “unwarranted” and “unjustified.”
As a privately held company, Binance’s stock does not trade on a public exchange.