Singapore-based Crypto.com cutting 260 jobs as market meltdown worries swirl

TWO big names in crypto are cutting jobs as the digital currency market continues to spiral downward. Crypto lending platform BlockFi said on Monday (Jun 13) that it will reduce its headcount by about 20 per cent, while digital currency exchange Crypto.com announced a 5 per cent cut on Friday.

Crypto.com, which is headquartered in Singapore, announced layoffs of about 260 staff, or 5 per cent of its workforce. Chief executive officer Kris Marszalek tweeted on Friday that the company made the “difficult and necessary decisions” to optimise for profitability and sustainable growth during a market downturn.

BlockFi founders Zac Prince and Flori Marquez said in a blog post that “market conditions that have had a negative impact on our growth rate” drove their decision to make the job cuts. Based in Jersey City, NJ, the company has more than 850 employees and is laying off more than 200 workers, dropping its headcount to around 600 employees.

The layoffs are yet another sign of trouble for the once white-hot crypto industry. Celsius, another top crypto lending platform, said Sunday that it was pausing withdrawals, swaps and transfers following weeks of speculation that it would be unable to pay out the significant returns promised on its products. Earlier this month, crypto exchange Gemini Trust said it plans to slash 10 per cent of its staff and Coinbase Global also announced that it is rescinding job offers and freezing hiring. 

The crypto market plummeted after the implosion of the TerraUSD stablecoin in May and several coins are trading significantly lower. At the moment, the price of Bitcoin is just under US$24,000, representing a 20 per cent drop over the last 30 days.

In a tweet Monday announcing the layoffs, Prince, who is BlockFi’s chief executive officer, said that the company is committed to sticking around for the long haul.

A NEWSLETTER FOR YOU

Monday, 3.30 pm

Garage

The hottest news on all things startup and tech to kickstart your week.

Sign Up

“Our clients will not experience any material changes to the quality of service they have come to expect, their funds are safeguarded, and all platforms and products continue to operate normally,” he said. 

The crypto lending platform is also looking to secure fresh funding at a reduced valuation of US$1 billion, after being previously valued at US$3 billion. The lower valuation is another sign of cooling interest from venture capitalists who poured billions of dollars into the crypto industry over the past 2 years. 

BlockFi hit another speed bump this year, when the company agreed to pay US$100 million in penalties following the US Securities and Exchange Commission’s allegations that it was selling its crypto lending product as an unregistered security.

The company declined to comment beyond what had already been posted by its executives. BLOOMBERG