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FTX spillover continues to spread as 2 more crypto exchanges initiate layoffs

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Sam Bankman-FriedSam Bankman-Fried.

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  • FTX’s collapse has rocked the digital asset sector, and two more crypto exchanges have started cost-cutting measures. 
  • The crypto exchanges Amber Group and OSL will move to reduce operating expenses via staff cuts, according to the South China Morning Post.
  • Amber is “anticipating and preparing itself for an extremely conservative position, so that it can go the long mile.”

FTX’s downfall continues to reverberate through the digital asset sector, with two more crypto exchanges moving to cut costs and reduce staff.

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

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

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

At the same time, Amber has been delaying payables to third-party vendors and shuttered 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, Crunchbase data shows. 

In a message to the SCMP, Amber said that it’s “anticipating and preparing itself for an extremely conservative position, so that it can go the long mile, even if it means having to go back to core business fundamentals during this period.”

Other crypto exchanges have also announced steep staff reductions recently, including Coinbase and Crypto.com, while Binance said it plans to grow its headcount.

Meanwhile, crypto lender Genesis will significantly reduce its workforce amid expectations it will file for bankruptcy, after FTX helped induce a liquidity squeeze.

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

Read the original article on Business Insider

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