Crypto

FTX Overflow Continues to Spread as 2 More Crypto Exchanges Initiate Layoffs

  • The collapse of FTX shook the digital asset industry, and two other crypto exchanges began cost-cutting measures.
  • According to the South China Morning Post, crypto exchanges Amber Group and OSL will work to reduce operating expenses through staff reductions.
  • Amber is “looking ahead and preparing for an extremely conservative stance, so she can go a long way.”

The fall of FTX continues to ripple through the digital asset sector, with two other crypto exchanges aiming to cut costs and cut staff.

OSL and Amber Group will both cut operating expenses in light of the damage to the cryptocurrency market, the South China Morning Post reported Thursday.

A subsidiary of Hong Kong-listed BC Technology Group, OSL told SCMP it will cut costs by around 33% “in response to current market conditions” and that the process will include downsizing.

As for Amber, which is now based in Singapore and was founded in Hong Kong, the company will cut jobs in its IT, risk management and compliance departments, after cutting its entire internal audit team, the report reported. SCMP.

At the same time, Amber delayed debts to third-party suppliers and closed an office in Hong Kong’s downtown district for a more affordable location. This comes despite Amber completing a $300 million funding round in December, according to data from Crunchbase.

In a message to SCMP, Amber said she is “looking ahead and preparing for an extremely conservative stance, so that we can go a long way, even if it means having to go back to the fundamentals of the core business during this time.”

Other crypto exchanges have also recently announced major staff cuts, including Coinbase and Crypto.com, while Binance said it plans to increase its workforce.

Meanwhile, the Genesis crypto lender will significantly reduce its workforce amid expectations that it file the balance sheetafter FTX helped induce a liquidity squeeze.

And crypto-friendly bank Silvergate Capital reported a fourth-quarter loss of $1 billion this week as the FTX crash sparked a run at the end of 2022 when clients withdrew $8.1 billion from deposits.

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