The crisis gripping the crypto industry has continued to spread to a number of companies since the launch of the terraUSD stablecoin last spring.
Investors have abandoned cryptocurrencies for safer asset classes in response to the Federal Reserve's continued interest rate hikes. Since 2022, several acceptance processes are underway: FTX, Blockfi, Celsius and Voyager.
Below is a list of layoffs, bankruptcies and other issues that occurred this year.
Blockchain.com
The crypto brokerage firm said it was laying off 28% of its workforce, the equivalent of around 110 employees, according to CoinDesk. The company laid off another 150 people this summer and announced it would close its Argentina office.
Coin base
The largest US cryptocurrency exchange said it would cut about 20% of its staff, or about 950 people, and accept massive cost cuts as part of a restructuring plan. At the end of September, the company employed about 4,700 people. In summer, the fair also lays off employees.
The company has struggled to turn a profit as fewer investors are trading cryptocurrencies.
Coinbase COIN -0.59% recently agreed to pay a $50 million fine to the New York State Department of Financial Services to settle allegations that they allowed customers to open accounts without sufficient verification antecedents.
Crypto.com
The Singapore-based exchange has cut a fifth of its global workforce, its second round of layoffs in six months.
According to the Wall Street Journal, several Crypto.com employees were fired when they unexpectedly left online meetings or logged out of company systems.
Several crypto exchanges have suffered major setbacks since FTX's sudden drop in November. The Crypto.com blip that month exacerbated the problem. CEO Chris Marszalek said the company mishandled a deal worth nearly $400 million.
Digital currency group
The crypto conglomerate announced it would be closing its headquarters fund management division, which is a relatively new addition to Barry Silbert's assets. DCG's other assets include Genesis Global Capital, a cryptocurrency lending firm; Greyscale, which manages the world's largest bitcoin fund; and crypto-focused media company CoinDesk.
Cryptocurrency media recently hired investment bankers to help them explore options, including a partial sale to a full sale, the magazine reports. In recent months, the Digital Currency Group has received several unsolicited offers of $200 million for CoinDesk, which it purchased in 2016 for $500,000.
ORIGIN
Crypto lending firm DCG has laid off 30% of its staff and filed for Chapter 11 bankruptcy in two of its subsidiaries.
His death is an example of how the FTX collapse affected the entire industry. According to the magazine, Genesis lent at least hundreds of millions of dollars to trading firm Alameda Research, a subsidiary of FTX.
Genesis lasted longer than the others; Cryptocurrency lenders Celsius Network and Voyager Digital filed for bankruptcy in July.
month
The cryptocurrency exchange says it has laid off around 35% of its global workforce, another setback for parent company Digital Currency Group. The London-based company employed more than 900 staff, known internally as "Lunouts", prior to the layoffs, according to a company spokesperson.
Houbi
The cryptocurrency exchange said it plans to lay off about a fifth of its staff and maintain a much reduced team. It says its users' assets "will always be fully protected" and its security capabilities are strong.
Nansen, a blockchain analytics platform, reported that Huobi recorded a significant increase in net revenue prior to the announcement.
This explanatory article may be updated from time to time.
Email Candice Choi at candice.choi@wsj.com
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