According to a reporter using the Twitter handle Wu Blockchain, BitMEX, a crypto derivatives trading platform, plans to downsize a third of its work force, joining the long list of industry firms who have been slashing down their human capital resources amid a biting crypto winter. This information is a week after CEO Alexander Höptner resigned after serving nearly two years. CFO Stephen Lutz is stepping in to succeed him.
A workforce change is necessary.
As part of its “Beyond Derivatives” strategy, the cryptocurrency exchange platform had previously launched spot trading, brokerage, and custody services and hired additional staff. However, BitMEX executives reportedly believe that a workforce change is essential as the crypto firm seeks to move deeper into the crypto derivatives industry.
“As an unintended consequence, we had to make changes to our workforce,” a BitMEX spokesperson said in an email. “Our top priority is to ensure that all employees who will be impacted get the support they need. Each of them has been instrumental in the unique journey that BitMEX has started from its roots as a small startup to become one of the best cryptocurrency exchanges in the world.”
The spokesperson also stated that BitMEX will now focus more on the goal of providing a crypto derivatives trading experience that everyone will be aiming for. Additionally, the company plans to focus on “liquidity, latency, and a vibrant derivatives community, including BitMEX token trading,” rather than expanding into other parts of the money-finance industry. Encode.
BitMEX’s turmoil days
The news comes shortly after the company announced it was suspending trading on its platform due to a technical problem. Adding to its turmoils, ’ BitMEX’s top employee had pleaded guilty to violating bank secrecy. However, they managed to fix it and provide security for customer funds.
BitMEX is a market-leading crypto derivatives exchange that allows traders to buy and sell futures and perpetual contracts on a wide range of crypto assets. However, the exchange’s lack of regulatory compliance, and criminal charges by its founders in the United States, have proved to be a deterrence to potential users.
BitMEX laid off 75 employees just weeks after co-founders Arthur Hayes, Ben Delo, and Samuel Reed pleaded guilty to violating US banking secrecy laws. The firm also recently canceled a transaction with the German bank Bankhaus von der Heydt, following the announcement in January. The downfall of the Terra ecosystem, along with the collapse of crypto company 3AC and crypto lending company C Network, has affected all crypto businesses. Recently, Gemini, another cryptocurrency exchange, also laid off employees.
According to various reports, Mike Novogratz’s crypto-focused company, Galaxy Digital, is also planning to cut its workforce. These reports also indicate the corporation might fire 50 to 75 individuals or up to 20% of its staff.
Additionally, companies like Gemini, CryptoCom, Coinbase, Huobi, Bybit, and others have already taken similar moves. The biggest cryptocurrency exchange in the world, Binance, is one of the few that choose to grow its crew despite the unfavorable macroeconomic climate.