Crypto Layoffs and Bankruptcies in 2023: Here’s the List You Can See
The crisis in the crypto industry has continued to spread to a number of companies since the run on stablecoin terraUSD last spring.
The crisis in the crypto industry has continued to spread to a number of companies since the run on stablecoin terraUSD last spring.
Many of the biggest crypto lenders have fallen after customer withdrawals, risky practices and a lack of regulation. Bankruptcy registrations in particular have emphasized how intertwined many of the industry players were.
Many of the biggest crypto lenders have fallen after customer withdrawals, risky practices and a lack of regulation. Bankruptcy registrations in particular have emphasized how intertwined many of the industry players were.
Investors flocked from crypto to safer asset classes in response to the Federal Reserve’s continued rate hikes. There are several ongoing bankruptcy proceedings from 2022: FTX, Blockfi, Celsius and Voyager.
Investors flocked from crypto to safer asset classes in response to the Federal Reserve’s continued rate hikes. There are several ongoing bankruptcy proceedings from 2022: FTX, Blockfi, Celsius and Voyager.
Below is a list of major layoffs, bankruptcies and other distresses so far this year:
Blockchain.com
The crypto brokerage said it was laying off 28% of its workforce, equivalent to about 110 employees, according to CoinDesk. This summer, the firm had laid off another 150 people and said it would close its offices in Argentina.
Below is a list of major layoffs, bankruptcies and other distresses so far this year:
Blockchain.com
The crypto brokerage said it was laying off 28% of its workforce, equivalent to about 110 employees, according to CoinDesk. This summer, the firm had laid off another 150 people and said it would close its offices in Argentina.
Coin base
The largest U.S. crypto exchange said it would eliminate about 20% of its staff, or about 950 people, and adopt sweeping cost cuts as part of a restructuring plan. At the end of September, the company had around 4,700 employees. The stock exchange also laid off employees in the summer.
Coin base
The largest U.S. crypto exchange said it would eliminate about 20% of its staff, or about 950 people, and adopt sweeping cost cuts as part of a restructuring plan. At the end of September, the company had around 4,700 employees. The stock exchange also laid off employees in the summer.
The company has struggled to make money with fewer investors trading cryptocurrency.
The company has struggled to make money with fewer investors trading cryptocurrency.
Coinbase recently agreed to pay a $50 million penalty to the New York State Department of Financial Services to settle allegations that it allowed customers to open accounts without performing adequate background checks.
Coinbase recently agreed to pay a $50 million penalty to the New York State Department of Financial Services to settle allegations that it allowed customers to open accounts without performing adequate background checks.
Crypto.com
The Singapore-based exchange cut a fifth of its global workforce – its second round of layoffs in six months.
Crypto.com
The Singapore-based exchange cut a fifth of its global workforce – its second round of layoffs in six months.
Some employees at Crypto.com found out they were being laid off when they were suddenly disconnected from online meetings, or booted out of the company’s systems, The Wall Street Journal reported.
Some employees at Crypto.com found out they were being laid off when they were suddenly disconnected from online meetings, or booted out of the company’s systems, The Wall Street Journal reported.
Several crypto exchanges were hit by large withdrawals after the sudden collapse of FTX in November. A misstep by Crypto.com that month added to the problems. CEO Kris Marszalek said the company had mishandled a transaction of about $400 million.
Several crypto exchanges were hit by large withdrawals after the sudden collapse of FTX in November. A misstep by Crypto.com that month added to the problems. CEO Kris Marszalek said the company had mishandled a transaction of about $400 million.
Digital currency group
The crypto conglomerate said it would shut down its wealth management division, HQ, which was a relatively recent addition to Barry Silbert’s holdings. DCG’s other properties include Genesis Global Capital, a crypto lending firm; Grayscale, which manages the world’s largest bitcoin fund; and crypto-focused media company CoinDesk.
Digital currency group
The crypto conglomerate said it would shut down its wealth management division, HQ, which was a relatively recent addition to Barry Silbert’s holdings. DCG’s other properties include Genesis Global Capital, a crypto lending firm; Grayscale, which manages the world’s largest bitcoin fund; and crypto-focused media company CoinDesk.
The cryptocurrency has recently retained investment bankers to help it explore options, including a partial to full sale, the Journal reported. In recent months, Digital Currency Group received several unsolicited offers north of $200 million for CoinDesk, which it bought in 2016 for $500,000.
The cryptocurrency has recently retained investment bankers to help it explore options, including a partial to full sale, the Journal reported. In recent months, Digital Currency Group received several unsolicited offers north of $200 million for CoinDesk, which it bought in 2016 for $500,000.
Genesis
DCG’s crypto lending firm laid off 30% of employees and filed for Chapter 11 bankruptcy protection, along with two of its subsidiaries.
Genesis
DCG’s crypto lending firm laid off 30% of employees and filed for Chapter 11 bankruptcy protection, along with two of its subsidiaries.
Its repeal is an example of how the collapse of FTX rippled through the industry. Genesis had loaned at least hundreds of millions of dollars to trading firm Alameda Research, an FTX affiliate, the Journal reported.
Its repeal is an example of how the collapse of FTX rippled through the industry. Genesis had loaned at least hundreds of millions of dollars to trading firm Alameda Research, an FTX affiliate, the Journal reported.
Genesis had lasted longer than others; crypto lenders Celsius Network and Voyager Digital had filed for bankruptcy in July.
Genesis had lasted longer than others; crypto lenders Celsius Network and Voyager Digital had filed for bankruptcy in July.
Luna
The cryptocurrency exchange said it was laying off around 35% of its global workforce, marking another setback for parent company Digital Currency Group. The London-based firm had more than 900 employees – known internally as “Lunauts” – before the layoffs, according to a company spokeswoman.
Luna
The cryptocurrency exchange said it was laying off around 35% of its global workforce, marking another setback for parent company Digital Currency Group. The London-based firm had more than 900 employees – known internally as “Lunauts” – before the layoffs, according to a company spokeswoman.
Huobi
The crypto exchange said it planned to lay off about a fifth of its staff and said it would keep a very lean team. It said users’ assets “would always be fully protected” and that its security features were robust.
Huobi
The crypto exchange said it planned to lay off about a fifth of its staff and said it would keep a very lean team. It said users’ assets “would always be fully protected” and that its security features were robust.
Nansen, a blockchain analytics platform, said Huobi saw a significant increase in net outflows before the announcement.
Nansen, a blockchain analytics platform, said Huobi saw a significant increase in net outflows before the announcement.
