Crypto exchange Binance has laid off over 1,000 people globally in recent weeks amid its ongoing legal investigation from the U.S. Securities and Exchange Commission (SEC) and other regulatory challenges, a source told the Wall Street Journal.

More than a third of the staff at Binance – which totaled about 8,000 prior to the layoffs – could eventually be affected by the job cuts, the source said.

A spokesperson for Binance confirmed the layoffs to the WSJ without specifying the exact number.

“As we prepare for the next major bull cycle, it has become clear that we need to focus on talent density across the organization to ensure we remain nimble and dynamic,” the spokesperson said.

Read more: Binance Says ‘Reevaluating’ Roles After Report of Layoffs