Thousands of employees get the ax as companies face depreciation, scandals and legal turmoil

Bitcoin crypto winter

Despite the rise in crypto prices so far this year has been a tough 2023 for the industry.FTiare/Getty Images

  • Major crypto companies, including Crypto.com, Coinbase, and Genesis, announced layoffs in 2023.

  • To complicate things further, the SEC has filed lawsuits against two major players in crypto.

  • Despite the recent turmoil, prices of major cryptocurrencies like Bitcoin and Ethereum have soared so far this year.

It’s a brutal, brutal winter for the crypto world.

The new year has just begun, but so far, the cryptocurrency industry has shown no signs of slowing down in 2022: Thousands have been given pink marks and the Securities and Exchange Commission has filed charges against two major players. industry.

Here’s a quick summary of what’s already happened:

Two-week mass layoffs

Brian Armstrong, CEO of Coinbase.

CEO Brian Armstrong recently announced that he will be laying off 20% of Coinbase employees.Patrick T. Fallon / Getty Images

In the first days of January, several major companies in the cryptocurrency industry such as Genesis, Coinbase, Blockchain.com, and Crypto.com announced their plans to significantly reduce their workforce. For a few of these companies, such as Crypto.com and Genesis, this marks a second round of layoffs in a short period of time after previous headcount cuts due to the fall in cryptocurrency prices over the summer.

In these latest layoffs announcements, some companies spoke of “unscrupulous actors,” while others pointed directly to the elephant in the room: FTX’s bankruptcy.

Fingerprints of FTX

Sam Bankman-Fried

Federal prosecutors charged Sam Bankman-Fried with fraud, money laundering and campaign finance violations.David Dee Delgado/Getty Images

Indeed, the spectacular collapse of Sam Bankman-Fried’s company in November created ripple effects that still plague the industry.

Crypto investors are still unable to withdraw some assets from crypto exchanges like Gemini, and there is a growing distrust of centralized exchanges among average investors.

legal obstacles

Entrepreneurs Tyler Winklevoss and Cameron Winklevoss of FOX Business

The SEC sued Tyler and Cameron Winklevoss’ company for offering and selling unregistered securities.Astrid Stawiarz/Getty Images

To further complicate matters, the SEC on Friday accused crypto companies Genesis and Gemini, founded by the Winklevoss twins of Facebook fame, of illegally offering unregistered securities for sale. The accusations come after SEC Chairman Gary Gensler was criticized by some investors for failing to protect against alleged abuses of FTX.

Some leaders of the crypto world, such as the CEOs of Coinbase and Ripple, asked For more regulation regarding crypto trading in the past, the accusations did not go well with Gemini CEO Tyler Winklevoss. criticized The SEC’s actions were seen on Twitter as “completely counterproductive”.

Despite the current turmoil in the industry, cryptocurrency prices are doing relatively well, with some analysts questioning how much harder the industry can take: Both Bitcoin and Ethereum prices have increased by double-digit percentages since the start of the year.

Read the original article on Business Insider

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