This Crypto Company Is Firing 20% Employees Due To FTX Collapse


Rohit Kulkarni

Rohit Kulkarni

Jan 19, 2023


Singapore-based Crypto.com is in the headlines as it announced that it shall be reducing about 20% of its workforce. This comes amid cryptocurrency exchanges face industry-wide challenges brought on by the collapse of FTX last year.

This Crypto Company Is Firing 20% Employees Due To FTX Collapse

Crypto.com Announces Plans to Slash 20% Workforce

The announcement by Crypto.com comes amid concerns about reserves and solvency across the sector. When it comes to the timing of such announcement, it should be noted that it came just a few days after rival exchanges Coinbase Global Inc (COIN.O) and Huobi announced their plans to lay off about 20% of their staff.

A source told Reuters last week that Genesis, too, had cut jobs, equating to 30% of its workforce.

The layoffs at Crypto.com would be its second in about six months, after it reduced jobs in July last year to weather the macro-economic downturn amid rising interest rates.

CEO Kris Marszalek said in a statement said that recent FTX collapse “significantly damaged trust in the industry”.

“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.”

FTX Collapse

FTX Trading Ltd., commonly known as FTX, is a bankrupt company that formerly operated a cryptocurrency exchange and crypto hedge fund. The exchange was founded in 2019 and, at its peak in July 2021, had over one million users and was the third-largest cryptocurrency exchange by volume.

The collapse of Sam Bankman-Fried’s FTX was the biggest in string of big crypto-related failures in 2022. It sparked a cryptocurrency rout and has left an estimated 1 million creditors facing losses of billions of dollars.


Rohit Kulkarni
Rohit Kulkarni
  • 1141 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online