Published , by Donovan Erskine
Published , by Donovan Erskine
When cryptocurrency exchange FTX filed for Chapter 11 bankruptcy in November of 2022, it reverberated throughout the crypto business. These troubles have extended to the massive Crypto.com, which recently laid off 20 percent of its workforce. Leadership at the company blamed a lack of growth due to the FTX collapse last year as the reason behind the layoffs.
Crypto.com CEO Kris Marszalek shared a blog post on the company’s website in which he discussed the recent layoffs. He confirms that the crypto exchange recently laid off roughly 20 percent of its global workforce.
Most notably, Marszalek directly names the infamous FTX collapse as a leading cause of the layoffs. “. The reductions we made last July positioned us to weather the macro economic downturn, but it did not account for the recent collapse of FTX, which significantly damaged trust in the industry.” The sudden downfall of FTX, which was previously one of the biggest crypto exchanges in the world, led to acute criticism and skepticism of the cryptocurrency business at large.
The collapse also led several of the company’s partners to be in precarious situations. Several celebrity spokespeople for FTX, including Tom Brady and Stephen Curry, were sued for promoting the platform. GameStop and TSM also had to cut ties with FTX shortly after the news of its shuttering.
As the cryptocurrency world continues to navigate the fallout of FTX’s collapse, stick with Shacknews for the stories you need to read.