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Jan 13 (Reuters) – Crypto.com announced on Friday that it will cut about 20% of its workforce as cryptocurrency exchanges face industry-wide challenges brought on by last year’s FTX collapse. bottom.
The Singapore-based company’s announcement comes amid concerns over sector-wide reserves and solvency, as rival exchanges Coinbase Global Inc (COIN.O) and Huobi lay off about 20% of their workforce. A source told Reuters last week that Genesis had also laid off the equivalent of 30% of its workforce.
Crypto.com’s layoffs are the second in about six months after laying off staff in July last year to weather a macroeconomic downturn caused by rising interest rates.
Kris Marszalek, CEO of Crypto.com, said the recent FTX demise “has severely damaged trust in the industry.”
“For this reason, as we continue to focus on prudent financial management, we have made the difficult but necessary decision to make additional cuts to position the company for long-term success.”
Sam Bankman-Fried’s FTX bankruptcy was the largest in a string of major crypto-related bankruptcies in 2022. This has caused a cryptocurrency crash, with an estimated 1 million creditors facing billions of dollars in losses.
Reported by Leah Binoy, Bengaluru.Edited by Rashmi Aich
Our standards: Thomson Reuters Trust Principles.
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