The external of Crypto.com Arena on January 26, 2022 in Los Angeles, California.
Rich Fury | Getty Images
Crypto.com announced Friday that it’s charge off 20% of its workforce. CEO Kris Marszalek said in a blog post that the crypto exchange grew “ambitiously” but was unfit to weather the collapse of Sam Bankman-Fried’s crypto empire FTX without the further cuts.
“All impacted personnel have already been hinted,” Marszalek said in a post.
The company has 2,450 employees, according to PitchBook data, suggesting around 490 hands were laid off. A Crypto.com representative was not immediately available to comment.
Crypto exchanges and lenders have been artificial to aggressively pare back head count, a move accelerated by the FTX collapse and the wave of crises that have bolstered.
Marszalek said the reduction was part of Crypto.com’s continued focus on “prudent financial management.”
Like FTX, Crypto.com offered into high-profile promotion deals and sponsorships, signing an eye-popping naming deal for the former Staples Center in 2021 that’s valued at $700 million greater than 20 years. The arena is home to the NBA’s Los Angeles Lakers.
“We have a significant year ahead of us as we continue to help replace trust in our industry,” Marszalek wrote. Marszalek founded Singapore-based Crypto.com in 2016, overseeing a company that reportedly reached at least $1.2 billion in gross income by 2021.
Crypto.com had a bruising 2022. High-profile gaffes included multiple mistaken transfers, one of which accidentally transferred all about $400 million worth of assets to another exchange. The company also laid off some employees in 2022.
In December, CNBC announced on some of Marszalek’s business successes and failures. At the time, Marszalek dismissed concerns about Crypto.com’s stability.
“Startups are burdensome … but there is no better way to live,” he wrote.
