Crypto.com announced on Friday it would be cutting around 20% of its workforce, as cryptocurrency exchanges face industry-wide challenges following FTX’s collapse last year.
The move by the Singapore-based business comes amid widespread worries over reserves and solvency and only a few days after rival exchanges Coinbase Global Inc (COIN.O) and Huobi revealed intentions to lay off around 20% of its workforce. According to Reuters, Genesis has also slashed positions, accounting for 30% of its personnel.
The layoffs at Crypto.com would be the company’s second in around six months, following job cuts in July last year to weather the macroeconomic slump caused by rising interest rates.
FTX’s collapse in 2022 “significantly damaged trust in the industry,” Crypto.com CEO Kris Marszalek said in a statement.
“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,” he added.
The collapse of Sam Bankman-FTX Fried’s was the biggest of numerous large-scale cryptocurrency-related failures in 2022. It prompted a cryptocurrency crash, leaving an estimated 1 million creditors facing billions of dollars in damages.