Crypto layoffs and bankruptcies in 2023: Here’s the list to watch

livemint.com:

The crisis roiling the crypto industry has continued to spread to a number of companies since the run on the stablecoin terraUSD last spring.

Many of the biggest crypto lenders have fallen following customer withdrawals, risky practices and lack of regulation. The bankruptcy filings, in particular, have underscored how intertwined many of the industry players were.

Investors flocked from crypto to safer asset classes in response to the Federal Reserve’s continued rate increases. There are several continuing bankruptcy proceedings from 2022: FTX, Blockfi, Celsius and Voyager.

The crypto brokerage said it was laying off 28% of its workforce, equivalent to about 110 employees, according to CoinDesk. This summer, the firm had laid off another 150 people and said it would close its offices in Argentina.

The largest U.S. crypto exchange said it would eliminate around 20% of its staff, or about 950 people, and enact broad cost cuts as part of a restructuring plan. At the end of September, the company had around 4,700 employees. The exchange laid off employees in the summer as well.

The company has struggled to turn a profit with fewer investors trading cryptocurrencies.

Coinbase recently agreed to pay a $50 million penalty to New York state’s Department of Financial Services to settle accusations that it allowed customers to open accounts without conducting sufficient background checks.

The Singapore-based exchange cut a fifth of its global workforce—its second round of layoffs in six months.

Some Crypto.com staff found out they were laid off when they were suddenly disconnected from online meetings, or booted off company systems, The Wall Street Journal reported.

Several crypto exchanges were hit by heavy withdrawals following