Former Binance Executive Files Lawsuit Alleging Bribery and Unfair Dismissal

A former senior employee of Binance has taken legal action against the cryptocurrency exchange, claiming wrongful termination following her disclosure of an alleged bribery incident involving a colleague.

Amrita Srivastava, who worked as a senior executive for Binance’s Link platform, filed a lawsuit in the United Kingdom, accusing the exchange of dismissing her after she reported a colleague’s alleged attempt to solicit a bribe from a customer. According to Srivastava’s testimony at an employment tribunal, the colleague accepted funds under the pretense of offering consultative services to monitor the customer’s integration with Binance while concealing their association with the company.

Allegations of Bribery and Dismissal

Srivastava disclosed that she reported the incident to Binance’s management in April 2023. However, she was dismissed a month later, which she claims was in retaliation for her whistleblowing. The colleague implicated in the bribery allegations has since left Binance, according to Bloomberg.

In her lawsuit, Srivastava is suing Binance Europe Ltd., the exchange’s European arm, alleging that her dismissal was directly linked to her whistleblowing activities. She further claimed that her experience at Binance has caused significant harm to her career, stating that the situation has created lasting repercussions for her professional reputation.

Binance’s Response

Binance has refuted the claims, asserting that Srivastava’s dismissal was due to poor performance, not her whistleblowing. A spokesperson for the company told Bloomberg that the decision to end her employment predated her concerns about the bribery case. Binance’s lawyer added that the alleged bribery was already known to the company and was being addressed by its internal audit team.

Court filings submitted by Binance also highlighted pressure within the Link unit to secure deals. Srivastava alleged that this urgency arose from efforts to compensate for a significant revenue shortfall after the company discovered that approximately 25% of Link’s service revenue was linked to a customer with connections to Iran.

Implications for Binance

This legal battle comes as Binance continues to face scrutiny from regulators and legal challenges globally. The lawsuit underscores ongoing tensions within the company as it navigates compliance and operational challenges in an increasingly regulated crypto environment.

As the tribunal unfolds, the case could further illuminate internal practices at Binance and potentially influence broader discussions around whistleblower protections within the cryptocurrency industry.