CoinFLEX plans layoffs as market drop continues to be a problem
By Bob Garcia
The cryptocurrency exchange isn’t handling the market meltdown too well
Troubled CoinFLEX is undergoing massive layoffs. The cryptocurrency exchange said late last week that it had to lay off a “significant number” of employees from various areas and geographic locations to cut costs and focus on its core business. It is yet another piece of news on Americas Cardroom where crypto companies must go through another difficult decision due to the hard time the industry is going through.
“Unfortunately, we have had to lay off a significant number of CoinFLEX team members across all departments and geographies,” company co-founders Sudhu Arumugam and Mark Lamb announced in a blog post over the weekend. It appears that the staff reductions are significant enough that, in combination with other staff cuts, they will reduce the company’s costs “by approximately 50-60%,” the co-founders clarified. The remaining staff will focus exclusively on product and technology.
The news comes after a debilitating month for the cryptocurrency exchange platform, which froze all customer withdrawals at the end of June. Unlike the slew of other cryptocurrency companies and exchanges that also froze customer accounts, CoinFLEX claims it is in dire straits due to an $84 million shortfall owed to the company by a single “large individual customer.”
The exchange will provide an update soon as it seeks to get votes from depositors. CoinFLEX said the delay in the process is due to legal and accounting procedures. In addition, CoinFLEX aims to offer trading of locked versus unlocked balances in the coming days, in what the company called a “difficult market to price.”