A former top manager at Binance has asserted that the cryptocurrency giant ended her employment in retaliation after she disclosed a coworker’s supposed involvement in an alleged bribery scheme.
According to a November 28 report from the business publication Bloomberg News, the accusations raise serious questions about internal oversight at one of the world’s largest cryptocurrency exchanges.
Amrita Srivastava, who was located in London and worked from home on Binance’s Link platform, stated in a UK tribunal that her dismissal followed her efforts to flag unethical behaviour. She claimed that a colleague solicited a bribe from a client, promising more rapidly completed integration services in return.
These payments, she said, were disguised as fees for “consultative services,” while the implicated individual appeared to sever formal ties with Binance. The colleague has since departed the company.
Bribery Allegations Emerge Amid Regulatory Scrutiny
Srivastava joined Binance in April 2022 after a career at Mastercard, where she managed fintech operations in Western Europe. Initially drawn to Binance’s stated focus on improving compliance amidst growing global regulatory oversight, Srivastava described her experience as far from reassuring.
She characterized the company’s procedures as “chaotic,” with her unit facing increasing pressure to finalize deals, especially after losing significant revenue linked to a client reportedly connected to Iran.
The former executive stated that she formally reported the bribery incident to her superiors in April 2023. By May, she was dismissed, with Binance citing her “poor performance” as the reason for her termination.
However, Srivastava has countered this claim, asserting that her dismissal was directly tied to her decision to report the misconduct.
Binance Denies Claims of Retaliation Against Former Employee
In a strongly-worded rebuttal, Binance’s legal representative countered Srivastava’s accusations, asserting that her dismissal was entirely unrelated to blowing the whistle on alleged bribery.
According to the company’s lawyer, Binance had already launched an internal investigation based on similar claims prior to her report. Binance maintains that the decision to fire Srivastava was an independent one hinging solely on performance issues unrelated to any protected disclosure.
While Binance denies acting in retaliation, the company still risks significant penalties should the tribunal side with Srivastava. UK law allows for unlimited compensation for employees who can prove unfair dismissal stemming from whistleblowing.
With a case attracting so much scrutiny, an adverse ruling would undoubtedly come at great financial and reputational cost for Binance.
A Damaged Career and Lingering Effects
Srivastava attested to the lasting personal and professional toll taken by her Binance experience. Speaking to the tribunal, she spelled out the long-term repercussions of dismissal: “The fallout from Binance has set my career back considerably, a blow that I continue working to overcome many years later.”
As regulators worldwide ramp up oversight of cryptocurrency, Binance faces mounting compliance challenges. With legal battles proliferating across jurisdictions, this controversy only adds to pressure on the embattled exchange’s leadership amid growing regulatory uncertainty.
Strengthening Protections and Mitigating Risk
This case spotlights the importance of building robust safeguards for whistleblowers while simultaneously highlighting retaliation risks.
With proceedings now underway, observers from all angles will be watching Binance’s handling of these allegations closely for signs of its evolving approach to compliance, workplace policy, and treatment of employee concerns.
While the claims of impropriety and ensuing termination have highlighted the need for accountability in an industry frequently criticized for opacity, the resolution of these matters may also determine how cryptocurrency firms handle internal issues and safeguard whistleblowers prospectively.
The shrill summons signalling misdeeds and, thereafter, the accusations of unjust dismissal serve as a piercing reminder of the necessity for principled protocols where transparency is commonly questioned.
How this case concludes could establish a landmark for the way crypto companies address in-house indiscretions and champion alerting employees in the future.
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