- Binance.US has 117 contractors working in China, 110 of them based in Shanghai.
- The number of contractors is the highest in any country.
- The SEC accused Binance.US of not cooperating in the ongoing investigation and tendering nonrelevant documents.
Amidst growing FUD surrounding cryptocurrency exchange giant Binance, a document revealed the company’s U.S. arm – Binance.US – sources most of its contractors from China. Reacting to the report, renowned crypto analyst Adam Cochran responded, “Ah yes, everyone knows of America’s 51st state, Shanghai!”
According to the document, the Binance.US has 117 contractors in China, the highest in any country. Of the total, 110 contractors are situated in Shanghai. As the document notes, none of the contractors in China are actual employees.
Earlier this year, Binance laid off a large portion of its workforce and has been suffering an exodus of senior executives with no apparent end. Despite CEO Changpeng Zhao’s claim that the executive exits have been on mutual grounds, the timing and frequency of senior departures has raised eyebrows.
Elsewhere, the company continues to face regulatory scrutiny from the U.S. Securities and Exchange Commission. Recently, the regulator asked the court to grant it access to the company’s software and employees. However, the court declined the request.
The SEC claims it has not been able to get information from Binance.US or its global affiliate since it sued the company for offering unregistered securities. Earlier on September 15, the regulator had accused the company of not cooperating in the ongoing investigation and tendering irrelevant documents.
According to a prominent crypto analyst, SEC filings allege that the crypto exchange has been lying to the regulator. Additionally, the regulator claims that employees of BAM – the holding company of Binance.US – have been contradicting claims made by BAM to the SEC.
The crypto exchange has reacted to the regulator’s actions, calling them “unduly burdensome.” Meanwhile, Zhao continues to encourage the company’s customers to dismiss any FUD surrounding it.