Social media giants face regulatory pressure and may close messaging apps, laying off 51 employees.

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Recently, a well-known social media company is considering shutting down its messaging app. The company has issued layoff notices to 70 Israeli employees. On September 24, the company's CEO made a statement announcing the closure of the app and the reduction of the workforce to an elite team of 19 people.

The company is currently facing legal challenges from U.S. regulators. The regulatory agency accuses the company of conducting an unregistered $100 million token issuance. A representative from the enforcement division of the U.S. Securities and Exchange Commission stated that by selling this token, the company "deprived investors of the legal information they should have received, and hindered investors from making informed investment decisions."

The company was founded in 2009 by several Canadian students and received support from some well-known investment firms. In 2017, the company conducted its initial coin offering, raising $98 million, and launched its own virtual currency.

This event has sparked widespread discussion in the industry about the relationship between blockchain startups and regulatory bodies. Many companies are seeking to find a balance between innovation and compliance to drive the development of cryptocurrencies and blockchain technology.

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MidnightTradervip
· 13h ago
The regulation is too strict, isn't it?
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CountdownToBrokevip
· 13h ago
Retail investors are going to suffer again.
View OriginalReply0
SchrodingerWalletvip
· 07-13 16:12
Is regulation something that can be easily cut?
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StableGeniusvip
· 07-12 22:12
predictably rekt... just another proof that web3 needs better risk models tbh
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defi_detectivevip
· 07-12 22:10
The regulation is going to drive people crazy.
View OriginalReply0
GateUser-0717ab66vip
· 07-12 22:02
With such ruthless cuts, who is left?
View OriginalReply0
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