Lemon Cash crypto exchange lays off almost 40% of its staff

The Argentinean cryptocurrency exchange Lemon Cash announced that they had laid off 38% of their employees, or around 100 people. The CEO blamed the international crypto environment, as well as a "recessionary period" in startup investments. He also urged that the announcement was not related to the FTX collapse, and explained that although the company had user funds stored with FTX, they withdrew them prior to FTX halting withdrawals.

Lemon had closed a $44.1 million series A funding round earlier this year, which they kicked off in July 2021.

Nigerian startup Nestcoin has nearly all funds locked in FTX, announces layoffs

Nestcoin, a Nigerian startup that both builds and invests products they hope will "democratis[e] access to economic opportunity for everyday people in frontier markets", has announced that they will lay off more than 50% of their nearly 100 employees. Remaining employees will see their pay slashed by 40%, and the company CEO plans to take no compensation at all.

Nestcoin had nearly all of the funds remaining from their $6.45 million funding round locked in FTX—approximately $4 million.

Holding company for Mercado cuts 15% of employees

2TM, the holding company for the Brazilian crypto exchange Mercado, announced they would be laying off 15% of their workforce—about 100 people. The company had previously laid off more than 80 employees in June. Mercado raised a $200 million Series B funding round in July 2021, which valued the company at $2.1 billion—the highest-valued crypto exchange in Brazil.

Describing the layoffs, a spokesperson for 2TM said that Mercado was suffering for playing by the rules. "The competitive environment remains deteriorated and unfair, lacking the approval of the legal framework for crypto-activities, as players following the law are penalized by companies that ignore local rules."

Swyftx crypto exchange cuts 21% of staff

The Australian crypto exchange Swyftx laid off 21% of its workforce, affecting 74 employees. One such employee was on her honeymoon in Hawaii when she learned she was suddenly out of a job. The company blamed "an uncertain business environment, with levels of domestic inflation not seen in over two decades, rising interest rates, highly volatile markets across all asset classes, and the potential for a global recession" for the cuts.

Swyftx had announced in June that it would be merging with trading platform Superhero in a $1.5 billion deal.

Crypto.com reportedly lays off hundreds more employees than they announced, tries to hide it

In mid-June, Crypto.com announced they would be laying off 260 people, or around 5% of their employees. However, The Verge has reported that "hundreds more" employees were quietly laid off since then. They report: "Crypto.com has been trying to limit knowledge of the extent of these departures even within the company, with CEO Kris Marszalek refusing to answer a question about the total figure in a recent employees-only town hall meeting."

Marszalek also tried to discourage employees from leaking about the layoffs, saying at a company town hall: "A number [of employees laid off] makes for a great headline, it’s a great thing to gossip about. [But] as co-owners of this company, you should ask yourself, 'is it in my interest for this number to be out there?'" One employee told The Verge that this did nothing to assuage their fears about the layoffs, and that "[it felt like] I got told to shut up and get back to work. It felt insulting."

One recent review on Glassdoor claims that Crypto.com had laid off "more than 1,000 employees", and alleged that "They’ve removed the company directory so we can’t see the numbers go down."

Genesis lays off 20% of employees, jettisons CEO after Three Arrows Capital disaster

Crypto broker Genesis is laying off 20% of their employees and reshuffling their leadership in the wake of a several-hundred-million dollar loss related to the Three Arrows Capital implosion. With 260 employees, the 20% workforce cut will affect around 50 employees. Genesis also announced that their CEO Michael Moro would be "stepping down".

Brazilian crypto lender BlueBenx halts customer withdrawals and lays off employees after $32 million "hack"

The Brazilian crypto lending platform BlueBenx suddenly shut its doors after announcing they had suffered an "extremely aggressive" hack of 160 million BRL (US$32 million). However, they shared very little in the way of details, leading investors to question the veracity of their story.

All 22,000 customers of BlueBenx suddenly found them unable to withdraw funds from the platform. The platform also reportedly laid off the majority of its employees.

Robinhood cites crypto market crash in decision to lay off 23% of employees

Stock and crypto trading app Robinhood announced they would be laying off 23% of their staff: 780 people. The layoffs followed a prior round of layoffs in April, which saw 9% of their staff (~342 people) out of jobs.

Robinhood CEO Vlad Tenev wrote, "Since that time, we have seen additional deterioration of the macro environment, with inflation at 40-year highs accompanied by a broad crypto market crash. This has further reduced customer trading activity and assets under custody. Last year, we staffed many of our operations functions under the assumption that the heightened retail engagement we had been seeing with the stock and crypto markets in the COVID era would persist into 2022."

The announcement came the same day that Robinhood was fined $30 million by the state of New York for insufficient anti-money laundering and cybersecurity protections in the crypto portions of their offering.

CoinFLEX cuts "significant number" of staff

CoinFLEX, a yield farming platform that stopped withdrawals in late June, announced they had made major staff cuts to reduce their cost base by 50–60%. "The intention is to remain right-sized for any entity considering a potential acquisition of or partnership opportunity with CoinFLEX," they wrote in a blog post.

Crypto platform Immutable lays off 17% of its gaming division staff

Screenshot of gameplay of a digital trading card game. There is a streamer overlaid in the bottom left corner.Gods Unchained gameplay (attribution)
The Australian crypto company Immutable fired 17% of staff from its gaming division. Immutable has said this amounted to 18 workers, though the Games Workers Australia union disputed the number and said that 30 roles were cut. The fired employees all worked on the Gods Unchained blockchain-based trading card game, and were given 24–48 hours notice of their firing.

The fired employees quickly began preparing a legal fight against immutable, questioning whether their firing was legitimate when many of the people who were sacked were about to reach the vesting date for more than $1 million in stock options.

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