Amrita Srivastava, a former Binance employee, has filed a lawsuit against the exchange, accusing it of harassment and wrongful dismissal. She also accused the company of firing her on the wrong grounds following a report of a bribery incident at the company. Srivastava reveals that a colleague harvested payments purporting to provide ‘consultative services’ to get a customer onboarded on Binance faster.
According to a report on Thursday, the whistleblower made the bribery complaint to management in April 2023. However, Srivastava was fired just a month later despite raising the issue. She claims that she was fired for trying to address the issue.
Binance Responds to Allegations
Binance’s attorney stated that the company received information about the occurrence beforehand. Srivastava was fired based on poor performance, not on the whistleblowing. The statement read,
The decision to end her employment for poor performance pre-dated concerns she raised about an issue that was already known and under investigation by our internal audit team.
The case was interesting as it provided insight into what happens in Binance as a company. It has also increased its focus on the legal department due to its penalties in the U.S., such as a $4.3 billion fine for violations of anti-money laundering and sanctions laws.
Srivastava, a former Mastercard executive, came to Binance in 2022. She felt the company wanted to increase compliance. However, she said Binance has a very informal and chaotic atmosphere fueled by revenue generation. She also mentioned that after the company ended its relationship with a customer linked to Iran, she was forced to cover the gap with lower-standard business.
Bribery Claims and Ethics
Srivastava believes that bribery and deceiving customers are unethical and illegal and should never be tolerated. Regarding ethical issues, she said, ‘Some things are just right and wrong.’ The former Binance employee said the ordeal had damaged her work and credibility.
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The UK tribunal could award Srivastava substantial damages if her claims are upheld. Whistleblower awards in the UK are not capped, and that may mean her case would result in a huge payout. The case’s results may also affect the way Binance treats its employees and functions within its organizational structure.
