According to insider, Binance might implement significant layoffs as a reaction to the Department of Justice investigation.

Cryptocurrency exchange Binance is implementing a workforce reduction due to an ongoing investigation by the Justice Department. It is anticipated that the probe will result in a consent decree or settlement, as confirmed by an anonymous employee familiar with the company’s plans.

The program of job cuts will involve 1,500 to 3,000 employees across Binance’s global operations and will be implemented throughout the remainder of the year. The Wall Street Journal previously reported on Friday that 1,000 employees had already been laid off, with the layoffs being part of the overall planned reduction. The source requested anonymity as they are not authorized to disclose internal matters to the press.

The ongoing Justice Department investigation is expected to have a significant impact on the company’s structure and operations, according to the anonymous employee. If Binance chooses to reach a settlement regarding the DOJ allegations, it could involve a multi-billion dollar payment. Reuters has reported that federal prosecutors have been considering charges related to anti-money laundering violations and sanctions evasion, which could hinder Binance’s ability to obtain operating licenses and pose challenges for its founder, Changpeng Zhao.

A spokesperson for Binance disputed the claim that 3,000 employees would be affected by the cuts, stating that the higher figure was inaccurate.

The spokesperson explained, “As we prepare for the next major bull cycle, it has become evident that we need to enhance talent density throughout the organization to ensure agility and dynamism. This is not a matter of downsizing but rather a reassessment of whether we have the right talent and expertise in crucial positions.”

Binance has encountered substantial regulatory obstacles in recent months, including lawsuits from the Securities and Exchange Commission and the Commodity Futures Trading Commission over allegations of mishandling customer assets and operating an illegal, unregistered exchange in the United States.

Binance’s founder, Changpeng Zhao, has consistently dismissed concerns about the exchange’s future, even after being personally implicated in the SEC’s lawsuit. The company itself has experienced significant setbacks since the regulatory lawsuits, with hundreds of millions in outflows from the exchange and the departure of key executives.