Former Binance Employee Files Whistleblower Lawsuit in the UK
A former executive from Binance has initiated a whistleblower lawsuit against the renowned cryptocurrency exchange, alleging that a coworker solicited a bribe from a client in return for preferential treatment.
Amrita Srivastava, who held a senior position in London, asserts that she faced “unjust dismissal” following her decision to report the alleged unethical behavior.
Details of Srivastava’s Legal Action Against Binance
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During a tribunal, Srivastava described a situation where a colleague allegedly accepted payment under the pretense of offering consultative services. This payment was purportedly to speed up a client’s integration into the Binance ecosystem, while falsely implying no company affiliation.
Srivastava, who contributed remotely to Binance’s Link platform—an initiative aimed at connecting external brokers and clients to the exchange—launched her lawsuit against Binance Europe Ltd. She asserts that after reporting the bribery incident in April 2023, her employment was terminated within a month.
Binance’s legal team countered by asserting that the company was already aware of the alleged misconduct and claimed that the termination was due to “underperformance” rather than her whistleblowing actions.
Binance stated in response to Bloomberg inquiries, “The decision to terminate her employment for underperformance was made before the concerns she raised, which were already under investigation by our internal audit team.”
Allegations of Bribery: A Closer Look
Srivastava joined Binance in April 2022, bringing her experience from Mastercard, where she managed fintech coverage across Western Europe. She anticipated bringing positive changes within the organization.
However, according to Bloomberg, her tenure was overshadowed by what she described as a “disorganized” work environment, exacerbated by pressure to secure deals amidst a revenue shortfall in the Link unit.
Srivastava also detailed a disturbing encounter with a client who revealed the bribery attempt. “Turning a blind eye to a customer being defrauded was not an option,” she emphasized. “Soliciting a bribe and defrauding a client clearly crosses the line.”
In legal documents, Binance’s representatives highlighted that the company was actively addressing the bribery issue, emphasizing a culture committed to regularly addressing staff underperformance.
In the UK, compensation for whistleblower claims at employment tribunals is unlimited, while unfair dismissal claims can reach up to £105,700, or approximately $133,000.
Regulatory Challenges and Binance’s Legal Battles
This case emerges amidst significant regulatory scrutiny of Binance’s operations, especially in the US, where the company has faced rigorous enforcement actions by authorities.
In November 2023, Binance admitted to breaching US anti-money laundering and sanctions laws, resulting in a hefty $4.3 billion fine. This also led to the resignation of its former CEO and co-founder, Changpeng Zhao (CZ), who had already served a four-month prison sentence.
At the time of writing, Binance Coin (BNB), the exchange’s native cryptocurrency, is trading at $651, reflecting a 3% increase over the past 24 hours. However, it remains 9% below its all-time high of $717, achieved earlier this year.
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