Binance, the global cryptocurrency exchange, has been forced to make significant cutbacks to employee benefits due to a decline in profits caused by the current market environment and regulatory climate. The company has reportedly stopped reimbursing employees for expenses such as mobile phones, fitness, and working from home. These cost-cutting measures come after Binance fired over 1,000 employees in June. The exchange is also facing 13 charges brought against it by the United States Securities and Exchange Commission (SEC) and is under investigation by the U.S. Justice Department. Despite these challenges, Binance remains the most popular centralized crypto exchange in the world, with assets worth over $63 billion held on the platform.
In other news, Stu Alderoty, the chief legal officer of Ripple Labs, believes that U.S.-based banks may soon turn to using XRP for cross-border transactions. Alderoty’s statement comes after a recent court ruling that removed the “security” label from XRP, potentially opening up new partnership opportunities between Ripple and banks. Bank of America and American Express have previously shown interest in working with Ripple.
Meanwhile, Marathon Digital, a crypto mining company, is facing a lawsuit filed by its shareholders against its top management. The lawsuit alleges that CEO Fred Thiel and other executives breached their fiduciary duties, enriched themselves unjustly, and wasted corporate assets. The complaint states that Marathon’s management downplayed the company’s problems, artificially inflated its valuation, received excessive compensation, made lucrative insider sales, and received elevated bonuses based on false and misleading statements.
On a more positive note, two web3 venture firms, Polychain Capital and Coinfund, have raised a total of $350 million for new crypto funds. Polychain Capital raised $200 million for a new investment fund and plans to raise a total of $400 million. Coinfund secured $152 million for a seed fund, surpassing its initial goal of $125 million. This influx of funding signals a resurgence of interest in the industry and may help drive innovation and growth in the crypto sector.
In conclusion, Binance’s business has been significantly impacted by the crackdown on crypto firms by the SEC, leading to cutbacks in employee benefits. Ripple is hopeful that U.S. banks will adopt XRP for cross-border transactions following a recent court ruling. Marathon Digital is facing a lawsuit from its shareholders, alleging misconduct by its top management. However, there is also positive news with Polychain Capital and Coinfund raising substantial funds for new crypto investments. The crypto industry continues to face challenges, but there are also opportunities for growth and development.