© Courtesy of CryptopolitanPopular exchange Crypto.com may soon go bankrupt after announcing that it will cut off most of its transactions. According to the report, the exchange reviewed the terms of the deals and sponsors between the layoffs due to the nature of the market downturn. The journalist's note says that the company has reduced its support in the sports sector. Some deals around the FIFA World Cup, LA Angels Clubs and an eSports team.
Sponsorship agreements can be compromised
According to the full report, Crypto.com said it was ready to end the deal in its entirety before the settlement was reached. Reporter Asa Hicken listed the unnamed source, some former and current employees of the company. He said in his report that most cited the company as struggling financially after the market crash that began in May.
Hicken noted that the stock market tanked at its peak, and now things aren't as rosy as they used to be. Lawyers for the LA Angels argued that the company reneged on the agreement signed in December 2021. Additionally, Crypto.com reached an agreement with an esports team to terminate the contract after the end of this year.
In August, Crypto.com cut more than 30% of its workforce
The report said it will no longer be able to offer the full hospitality package signed with FIFA. In recent months, the company has been making waves in the crypto market. In addition to signing a $700 million deal to renovate the Staples Center, Matt Damon has also signed on to star in his commercials. However, there are reports that Crypto.com has continued to renovate the Staples Center.
Last month, the club reached a $500 million deal with the Union of European Football Associations. This latest report suggests that most of the company's protections with other companies may be at risk. The report also said the company cut more than 30% of its workforce in August. It comes after the company's CEO announced that he would be cutting just 5% of his workforce. However, the company is doing quite well on the service front as it has now acquired licenses in several countries to offer its services.