Cryptocurrency startup Blockchain.com has announced that it is laying off 25% of its staff, citing a worsening market situation.
The percentage corresponds to approximately 150 members of its staff.
The company also announced that it is closing its offices in Argentina and revising its plans to expand to a number of other countries.
The majority of layoffs – around 44% – concern workers in Argentina, while 26% involve workers in the US and 16% involve employees in the UK. The update was made earlier on Thursday.
The news, reported by the website Coinbase, was confirmed to CNBC by a representative of Blockchain.com.
The latter is one of the companies directly affected by the collapse of the crypto-hedge fund Three Arrows Capital.
3AC filed for bankruptcy protection from its creditors earlier in July, owing industry companies such as Celsius and Voyager Digital hundreds of millions of dollars. The co-founders of the company have since disappeared from the public eye and the legal representatives of its creditors are looking for them.
Blockchain.com had lent 3AC $270 million in cryptocurrency and is expected to lose most or all of that amount.
On Wednesday, cryptocurrency exchange Coinbase denied having any exposure to Celsius, Voyager or 3AC.
The collapse of the controversial stablecoin Terra in May led to a chain reaction and ultimately the collapse of cryptocurrency companies that had made risky investment bets with borrowed funds.
Companies such as Celsius and Voyager “locked” their customer accounts after failing to respond to withdrawal requests and subsequently went bankrupt.
Founded in 2012, Blockchain.com is a cryptocurrency exchange and digital wallet platform. The company claims that one-third of all cryptocurrency transactions are made through its platform.
The company, which is not publicly traded, was valued at $14 billion in a funding round earlier in 2022. Backers include British tycoon Richard Branson.
Source: Capital
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