Thousands of employees receive the ax as companies face plummeting valuations, scandals and legal turmoil

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Despite rising crypto prices so far this year, 2023 has been a tough year for the industry.FTiare/Getty Images

Major crypto companies including Crypto.com, Coinbase and Genesis announced layoffs in 2023.

To complicate matters, the SEC has just filed suit against two major crypto players.

Despite the recent turmoil, the prices of major cryptocurrencies like Bitcoin and Ethereum are on the rise so far this year.

It is a cruel and cruel winter for the crypto world.

The new year has only just begun, but so far the pain the cryptocurrency industry has seen in 2022 has shown no signs of abating: thousands of people have received the pink slip and the Securities and Exchange Commission has imposed charges against two major market players. industry.

Here is a brief recap of what has already happened:

Two weeks of massive layoffs

CEO Brian Armstrong recently announced that Coinbase would lay off 20% of its staff. Patrick T. Fallon/Getty Images

At the beginning of January, several major companies in the cryptocurrency industry, such as Genesis, Coinbase, Blockchain.com and Crypto.com, announced plans to significantly reduce their workforces. For a few of these companies, such as Crypto.com and Genesis, this is the second round of layoffs in a short period, following previous workforce reductions over the summer due to a decline cryptocurrency prices.

In this recent spate of layoff announcements, some companies alluded to “unscrupulous actors,” while others directly addressed the elephant in the room: the bankruptcy of FTX.

FTX’s fingerprints

Federal prosecutors have charged Sam Bankman-Fried with fraud, money laundering and campaign finance violations. David Dee Delgado/Getty Images

Indeed, the dramatic implosion of Sam Bankman-Fried’s company in November created ripple effects that continue to plague the industry.

Crypto investors still cannot withdraw certain assets from crypto exchanges like Gemini, and there is growing distrust of centralized exchanges among average investors.

Legal obstacles

The SEC sued Tyler and Cameron Winklevoss’ company for offering and selling unregistered securities. Astrid Stawiarz/Getty Images

To make the situation even more vexing, the SEC on Friday accused cryptocurrency firms Genesis and Gemini, founded by the Facebook-renowned Winklevoss twins, of illegally offering unregistered securities for sale. The charges come after SEC Chairman Gary Gensler was criticized by some investors for failing to protect against alleged abuse by FTX.

The story continues

While some leaders in the crypto world, like the CEOs of Coinbase and Ripple, have called for more regulation around crypto trading in the past, the accusations have not gone down well with Gemini CEO Tyler Winklevoss. who criticized the SEC’s actions as “totally counterproductive”. ” on Twitter.

Despite the current turmoil in the industry, with some analysts wondering how much more pressure the industry can withstand, cryptocurrency prices are doing relatively well: Bitcoin and Ethereum prices have risen by percentages double digits since the beginning of the year.

Read the original article on Business Insider

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