A former high-ranking employee of Binance has taken legal action against the UK division of the cryptocurrency exchange, citing a range of misconduct allegations, including bribery and wrongful termination.
Allegations of Misconduct
Amrita Srivastava, who once held a notable position at Binance, has launched her lawsuit in the UK court system, claiming that a fellow employee sought to obtain bribes from a client.
She argues that her termination was unjust, occurring merely a month after she alerted management to the misconduct in April 2023.
In her lawsuit, Srivastava accuses the unnamed colleague of accepting illegal payments disguised as fees for advisory services.
In response, a spokesperson for Binance insisted that the company was already aware of the bribery issue and asserted that Srivastava was let go due to “poor performance.”
Whistleblower Claims and Legal Context
Feeling a moral obligation to expose her colleague’s unethical actions, Srivastava expressed her belief that defrauding a customer is completely unacceptable.
The trajectory of this lawsuit within the UK’s legal framework is currently uncertain.
Should she prevail, individuals claiming unfair dismissal in the UK could receive compensation of up to around $150,000, and whistleblower claims could potentially yield unlimited damages.
Broader Legal Challenges for Binance
In a wider context, Binance finds itself embroiled in various legal challenges in the United States.
The Securities and Exchange Commission (SEC) has been pursuing the company over allegations related to unregistered securities offerings since June 2023.
In November 2023, Binance managed to reach a settlement with U.S. authorities concerning several civil regulatory matters, though the SEC case remains unresolved.
As part of the settlement agreement, Binance has agreed to pay a hefty sum of $4.3 billion.
Additionally, the company’s former CEO, Changpeng Zhao, was forced to resign and plead guilty to a single felony charge, leading to a four-month imprisonment.
Zhao was released in September.
Source: Cointelegraph
