Crypto

DCG’s Crypto Exchange Luno Will Cut 35% Jobs Amid Harsh Crypto Winter

Jan 25 (Reuters) – Luno, owned by Digital Currency Group, said on Wednesday it would cut 35% of its total workforce, the latest in a series of companies in the digital asset sector to cut staff to cope to a crash in the cryptocurrency market.

“2022 has been an incredibly challenging year for the tech industry at large and the crypto market in particular,” Luno said in a statement, adding that its growth and revenue were impacted by the downturn.

More than $1 trillion in value was wiped out of the crypto sector last year, with rising interest rates heightening fears of an economic slowdown. The crash led to high-profile bankruptcies of key industry players such as crypto hedge fund Three Arrows Capital and Celsius Network.

Yet the biggest blow came after major exchange FTX filed for bankruptcy protection in November. Its rapid fall has sparked harsh global regulatory scrutiny of how crypto firms hold funds and conduct business operations.

CNBC, which first reported the job cuts at Luno, said the reduction would affect more than 330 employees out of about 960.

Last week, the loan unit of crypto firm Genesis filed for bankruptcy protection in the United States, owing its creditors at least $3.4 billion after being knocked down by the market rout of the cryptography.

Reporting by Manya Saini in Bangalore; Editing by Shinjini Ganguli and Anil D’Silva

Our standards: The Thomson Reuters Trust Principles.

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