Per Reuters
Crypto.com to Slash 20% Of Workforce Citing How the FTX Collapse Damaged Industry Trust
1/13/2023
Crypto.com is the latest to join the list of companies that have let go of a significant chunk of their workforce. With plans of a 20% layoff, the crypto exchange follows rivals Coinbase, Huobi, and Genesis, which have also recently let go of a significant chunk of their workforce.
Crypto.com cited the collapse of FTX as the ultimate catalyst leading to the layoffs saying its fall has damaged trust in the crypto industry significantly, as noted by the company's CEO Kris Marszalek.
Marszalek: "It's for this reason, as we continue to focus on prudent financial management, we made the difficult but necessary decision to make additional reductions in order to position the company for long-term success."
The Singapore-based company, Crypto.com, announced concerns about solvency and reserves across the industry. The move is not too far out since it follows other companies that have already announced their plans to lay off staff.
Unlike other firms, including BlockFi, Three Arrows Capital, Voyager Digital, and Celsius Network, the news does not mention bankruptcy. Rather, it follows Coinbase and Huobi, who plan to let go of around 20% of workers, and Genesis, who had to cut 30% of employees.
Genesis and Gemini are also in hot water with the SEC as they were charged for selling unregistered securities.
The news comes amid Sam Bankman-Fried, the disgraced founder of the now-bankrupt FTX, is waiting for trial as he pleads not guilty to the charges against him, including fraud and others. Crypto.com CEO also specifically mentioned FTX's role in the company's decision to let go of workers, saying it was something they did not expect would happen.
Marszalek: "The reductions we made last July positioned us to weather the macro economic downturn, but it did not account for the recent collapse of FTX, which significantly damaged trust in the industry."
See flow at unusualwhales.com/flow.
Other News:
- US-Based Kraken to Stop Japan Operations Deregistering on Jan 31
- Genesis and Gemini charged by SEC with selling unregistered securities
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