Crypto.com lays off 20% of workforce after FTX collapse blunted ambitious growth

Crypto.com announced connected Friday that it's laying disconnected 20% of its workforce. CEO Kris Marszalek said successful a blog post that the crypto speech grew "ambitiously" but was incapable to relationship for the collapse of Sam Bankman-Fried's crypto empire FTX.

"All impacted unit person already been notified," Marszalek said successful a post. Crypto exchanges and lenders person been forced to aggressively pare backmost headcount, a determination accelerated by FTX and the wave of crises that person followed.

Marszalek said the simplification was portion of Crypto.com's continued absorption connected "prudent fiscal management."

Like FTX, Crypto.com entered into high-profile promotion deals and sponsorships, inking an eye-popping naming woody for the erstwhile Staples Center successful 2021 that is valued astatine $700 cardinal implicit 20 years.

"We person a important twelvemonth up of america arsenic we proceed to assistance reconstruct spot successful our industry," Marszalek wrote. Marszalek founded Crypto.com successful 2016, overseeing a institution that reportedly reached astatine slightest $1.2 cardinal successful gross by 2021.

Crypto.com had a bruising 2022. High-profile gaffes included multiple mistaken transfers, one of which accidentally transferred implicit $400 cardinal worthy of assets to different exchange. The institution besides executed a anterior circular of layoffs in 2022.

In December, CNBC reported connected immoderate of Marszalek's concern successes and failures. At the time, Marszalek dismissed concerns astir Crypto.com's stability.

"Startups are hard... but determination is nary amended mode to live," helium wrote.