The company dedicated to the exchange of cryptocurrencies Crypto.com, based in Singapore, notified this Friday that they are going to reduce 20% of their workforce in all the countries in which they operate worldwide. These events occur after the great problems that the digital currency industry has had, after the collapse of FTX last year and the arrest of its magnate Bankman-Fried.
“Today we have made the difficult decision to reduce our global workforce by approximately 20%,” company founder Kris Marszalek said in a statement released Friday, adding that “impacted staff” have already been notified. However, for Marszalek this decision “is not in any way related to our results”, specifying that they have more than 70 million users worldwide and maintain “a strong account balance”.
The founder justifies that this decision is due to “current economic setbacks” and “unpredictable events in our industry.” Specifically, he alludes to the collapse of FTX last November, whose founder, Sam Bankman-Fried, is awaiting a fraud trial against him, scheduled for October.
The bankruptcy of the platform, which came to have a valuation of 32,000 million dollars, “has significantly damaged confidence in our industry,” says the director of Crypto.com, which already fired 5% of the workforce in July. In this way, the competition has been exposed by the FTX crisis and the sector is not able to visualize recovery rates.
“Weather the macroeconomic downturn”
Marszalek indicates that the previous layoffs served to “weather the macroeconomic downturn”, although these were not enough to face “the recent collapse of FTX”. The current decision responds, he assures him, “to prudent financial management” and to the objective of “positioning the company for long-term success.”
Crypto.com is not the only company in the sector that has made staff cuts, as a significant number of companies have opted to carry out staff reductions after the resounding fall of FTX, including Coinbase Global, which on Tuesday announced the cut 950 jobs, also 20% of its workforce.
Meanwhile, Sam Bankman-Fried launched a blog on Thursday whose first publication he used to defend his management at the head of the firm: “I did not steal and I certainly did not keep billions of millions,” said the 30-year-old, accused by the authorities of United States of multiple crimes.
Bankman-Fried once again insisted on his blog that, had he not forced FTX into bankruptcy, he could have obtained new and guaranteed the assets of his clients, while the US authorities consider that he orchestrated a multi-million dollar fraud for which He faces up to 115 years in prison.