Published at : 14 Jan 2023 05:57 PM (IST)
As cryptocurrency exchanges facing industry-wide issues as a result of the failure of FTX in 2017, Crypto.com announced that it will be cutting around 20 percent of its personnel.
The announcement was made by the Singapore-based company in the midst of widespread concerns regarding reserves and solvency across the industry, and just a few days after competing cryptocurrency exchanges Coinbase Global Inc. and Huobi announced their plans to lay off approximately 20 percent of their staff members. Last week, a source confirmed to Reuters that job cuts had been made at Genesis, amounting to around 30 percent of the company’s employees.
The layoffs at Crypto.com would be the company’s second in around six months, after a reduction in employment in July of last year to weather the macroeconomic slump in the face of increasing interest rates.
According to a statement released by Crypto.com’s Chief Executive Officer Kris Marszalek, the most recent failure of FTX “seriously eroded confidence in the sector.”
“It is for this reason that, as we continue to concentrate on cautious financial management, we took the choice to make more cutbacks, which was tough but essential in order to position the firm for long-term success,”
In 2022, the failure of Sam Bankman-FTX Fried’s was the most significant in a series of significant failures connected to cryptocurrencies. It caused a widespread sell-off in cryptocurrencies, leaving an estimated one million creditors on the hook for losses of billions of dollars.