Lemon had closed a $44.1 million series A funding round earlier this year, which they kicked off in July 2021.
- "Carta abierta a la comunidad" ["Open letter to the community"], Lemon Cash blog (in Spanish)
Nestcoin had nearly all of the funds remaining from their $6.45 million funding round locked in FTX—approximately $4 million.
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 had announced in June that it would be merging with trading platform Superhero in a $1.5 billion deal.
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 Announces New Leadership Team", press release
- "Genesis CEO Steps Down as Crypto Broker Slashes Its Workforce", Bloomberg
Brazilian crypto lender BlueBenx halts customer withdrawals and lays off employees after $32 million "hack"
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 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 Update: July 29, 2022", CoinFLEX blog
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.
- "Australian crypto platform Immutable sacks 6% of staff despite plans to 'hire aggressively'", news.com.au
- "Sacked crypto unicorn staff plan legal challenge to redundancies", The Australian Financial Review