Former Binance Executive Files Lawsuit Over Bribery Allegations & Unfair Dismissal

A former senior employee of Binances UK division, Amrita Srivastava, has initiated legal proceedings against the cryptocurrency exchange, alleging both bribery and wrongful termination. According to the claims presented, the controversy stems from an internal report she filed in April 2023, detailing an incident involving another Binance employee soliciting bribes from a customer under the pretext of providing consultative services.

Srivastava asserts that her dismissal, which occurred just a month after raising the issue, was unjust and directly linked to her decision to report the unethical behaviour. However, Binance has refuted these claims, maintaining that the bribery incident was already under investigation and asserting that her dismissal was based on substandard performance rather than retaliation.

While Srivastava has strongly emphasised her commitment to ethical practices, describing her stance against the alleged misconduct as a matter of principle, the case remains unresolved in the UK court system. Legal experts note that individuals claiming unfair dismissal in the UK could be awarded compensation of up to £120,000, whereas whistleblowers may qualify for unlimited financial redress if their claims are substantiated.

This lawsuit emerges at a time when Binance is already grappling with significant legal challenges on multiple fronts. The company remains entangled in a high-profile legal battle with the U.S. Securities and Exchange Commission (SEC), which has accused the exchange of facilitating unregistered securities transactions. These allegations have put Binance under intense regulatory scrutiny, both in the US and the UK.

Adding to the turbulence, Binance UK experienced a significant leadership change in 2023, parting ways with its then-CEO, Jonathan Farnell. His departure coincided with mounting regulatory pressure, particularly from the UK‘s Financial Conduct Authority (FCA). Amid these challenges, Binance ceased accepting new customer registrations in the UK, a decision influenced by the FCA’s stringent regulations on cryptocurrency advertising.

Farnell, who joined Binance in 2021 after a stint as the compliance head at eToro, played a pivotal role in the exchange‘s regulatory compliance efforts within the UK. He was instrumental in navigating Binance’s operations following the FCAs ban on its UK business and also served as CEO of Bitfinity, a Binance-affiliated payment platform. His exit marked a critical point for Binance UK, as the exchange faced increasing demands to align with evolving regulatory frameworks.