Former Binance Exec Sues Over Bribery

Binance’s United Kingdom arm is under scrutiny after a former senior employee, Amrita Srivastava, filed a lawsuit alleging bribery and unfair dismissal. According to a Bloomberg report on Nov. 28, Srivastava accused another Binance employee of soliciting bribes from a customer. Her claims suggest the bribe was disguised as “consultative services.”

Srivastava reported the matter to management in April 2023 and alleges she was terminated a month later. Binance reportedly cited “poor performance” as the reason for her dismissal, while Srivastava maintains her termination was retaliatory.

Whistleblower Highlights Alleged Misconduct

Inside the Allegations

The lawsuit centers on Srivastava’s refusal to overlook what she described as clear misconduct. In her statement, she said, “I was not prepared to look the other way when someone had defrauded a customer and yet was still a part of the team. Some things are just right and wrong.”

Binance has acknowledged awareness of the alleged bribery, with a spokesperson confirming the incident. However, they deny any link between the reported bribe and Srivastava’s dismissal.

Legal Ramifications in the UK

The outcome of the case could depend on how the UK court interprets Srivastava’s claims. If the court finds her dismissal unfair, she could receive compensation up to $150,000. However, whistleblower cases, which often involve greater risks for plaintiffs, may result in unlimited compensation if successful.

Binance’s Mounting Legal Challenges

U.S. Legal Battles

This lawsuit adds to Binance’s growing list of legal troubles. In the United States, the cryptocurrency exchange has been battling the Securities and Exchange Commission (SEC) since June 2023 over allegations of unregistered securities offerings.

In November 2023, Binance settled separate civil regulatory enforcement actions in the U.S., agreeing to pay $4.3 billion. As part of the deal, then-CEO Changpeng Zhao (CZ) stepped down, pleaded guilty to one felony charge, and served four months in federal prison. He was released in September.

A Tipping Point for Binance?

The combination of U.S. settlements, the SEC lawsuit, and now Srivastava’s claims in the UK puts Binance under intense pressure. These challenges raise questions about the company’s governance and operational practices in a highly scrutinized industry.

The lawsuit filed by Amrita Srivastava against Binance UK highlights ongoing concerns about misconduct and accountability within the cryptocurrency industry. While Binance denies her claims of unfair dismissal, the case adds another layer to the exchange’s growing legal troubles globally.

As the legal proceedings unfold, the outcome could set a precedent for how whistleblowers in the crypto sector are treated, potentially impacting the broader narrative of transparency and trust within the industry.