Blockfi initiates Program for voluntary separation in order to further reduce the number of employees

Blockfi initiates Program for voluntary separation in order to further reduce the number of employees

Less than three weeks after FTX had completed a deal to take over Blockfi and the provision of a loan of $ 400 million, the cryptocurrency loan would like to voluntarily go.

The company in Hoboken, New Jersey, resident companies gives employees the opportunity to terminate a vacation paid for 10 weeks and 10 weeks of health insurance. deciphered on Tuesday, citing a blockfi employee.

A spokesman for Blockfi said the company initiated a "voluntary separation program to adapt our organization for the current market environment".

"We have not taken this measure lightly and want to make sure that employees have resources to make the right decision for them," said the spokesman Blockworks by email. "Blockfi is still fully functional and all customer money is protected."

The company publicly announced in mid -June that it would reduce 20 % of its staff. At the time, CEO ZAC Prince said that a "dramatic change" of the macroeconomic conditions had negatively influenced the growth rate. Shortly afterwards, Blockworks learned that the company had separated from its head of the US trade, Jason Wilkinson.

In contrast to competing lenders such as Celsius and Babel Finance, Blockfi managed to avoid payout blocks on its platform. The company also admitted a loss of $ 80 million in connection with its commitment to the crypto hedge fund Three Arrows Capital, but said that this was a fraction compared to the losses registered by other lenders.

In particular, Blockfi was supported by FTX, which initially agreed to support the company with a revolving credit line of $ 250 million before an agreement was made for a full purchase.

There were also concerns about the positions that Blockfi could have in the Grayscale Bitcoin Trust, which has dropped by almost 60 % since the beginning of the year. Prince, however, confirmed that the company itself has no commitment in the fund and processes loans in which shares are kept as security.

He recently said on Twitter that Blockfi should not be compared to his competitors who have closed and have impending losses.

Several employees of cryptocurrency companies, including Coinbase, Gemini and Crypto.com, have lost their jobs in the past two months, but it seems that a cost reduction phase for the industry is not yet over.

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The Blockfi contribution initiates "Program for voluntary separation" in order to further reduce the number of employees is not a financial advice.