Crypto.com lays off 20% of its workforce after FTX collapse

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The exterior of Crypto.com Arena on January 26, 2022 in Los Angeles, California.

Rich Fury | Getty Images

Crypto.com announced on Friday that it was laying off 20% of its workforce. CEO Kris Marszalek said in a blog post that the crypto exchange grew “ambitiously” but was unable to weather the collapse of Sam’s FTX crypto empire. Bankman-Fried without further reductions.

“All affected staff have already been notified,” Marszalek said in a post.

The company has 2,450 employees, according to data from PitchBook, suggesting that around 490 employees have been laid off. A Crypto.com representative was not immediately available for comment.

Crypto exchanges and lenders have been forced to aggressively reduce numerals, a move accelerated by the collapse of FTX and the wave of crises that followed.

Marszalek said the cut was part of Crypto.com’s continued focus on “prudent financial management”.

Like FTX, Crypto.com has high-profile endorsement deals and sponsorships, signing a stunning naming deal for the former Staples Center in 2021, worth $700 million over 20 years. The arena is home to the Los Angeles Lakers of the NBA.

“We have an important year ahead of us as we continue to help restore confidence in our industry,” Marszalek wrote. Marszalek founded Singapore-based Crypto.com in 2016, overseeing a business that is believed to have reached at least $1.2 billion in revenue by 2021.

Crypto.com has had a killer 2022. The high-profile gaffes included several erroneous transfers, one of which accidentally transferred over $400 million in assets to another exchange. The company also laid off some employees in 2022.

In December, CNBC reported on some of Marszalek’s commercial successes and failures. At the time, Marszalek dismissed concerns over Crypto.com’s stability.

“Startups are tough…but there’s no better way to live,” he wrote.

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