Crypto.com announces it will lay off 20% of workforce

Jan. 13 (UPI) — Crypto.com, one of the most prominent cryptocurrency exchanges, announced Friday it was laying off 20% of its workforce in what appears to be more evidence of the meltdown of the industry.

The retail-focused exchange that grew the be the third-largest cryptocurrency exchange by the size of employees, said the unforeseen collapse of fellow crypto exchange FTX led to the decision to reduce its workforce.

“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,” Kris Marszalek, co-founder and CEO of Crypto.com said in a statement to employees.

Marszalek said the company “grew ambitiously at the start of 2022” and built on “incredible momentum that aligned with “the trajectory of the broader industry.”

“That trajectory changed rapidly with a confluence of negative economic developments,” he said, adding that reductions the company made last July positioned it to “weather the macro-economic downturn” but did not account for the collapse of FTX, which “significantly damaged trust in the industry.”

In November, crypto exchange FTX filed for bankruptcy and its founder and former CEO Sam Bankman-Fried, now faces eight charges connected to alleged multibillion-dollar fraud. scheme.

Earlier this week, Coinbase, the first cryptocurrency trading platform to go public, said it is laying off more than 900 workers, blaming “market conditions.”

“The entire senior leadership team and I remain as confident as ever in our mission and vision at Crypto.com, along with our unique position within the industry as the leader in regulatory compliance, security and privacy,” Marszalek said.

“We have a significant year ahead of us as we continue to help restore trust in our industry and further mainstream our services in markets around the world. I am confident in our ability to build and lead the market, and I am grateful to work with you all on the journey ahead.”