FTX spillover continues to spread as 2 more crypto exchanges initiate layoffs
As Sam Bankman-Fried's crypto saga carries on, crypto exchanges OSL and Amber have slashed costs and initiated plans for layoffs.
The downfall of FTX continues to reverberate throughout the digital asset sector with two additional crypto exchanges making moves to reduce costs and staff in the wake of the damage to the cryptocurrency market. According to South China Morning Post, OSL and Amber Group will both cut operating expenses. OSL, a subsidiary of Hong Kong-listed BC Technology Group told the SCMP it would reduce costs by 33% in response to "current market conditions" and that this will also result in a reduction of headcount. The SCMP reported that Amber, which was established in Hong Kong and is now based out of Singapore, will be cutting jobs in its IT, risk management and compliance departments after it has eliminated its entire internal audit team. Amber also delayed third-party vendor payments and closed an office in Hong Kong’s downtown district to make it more affordable. Crunchbase data indicates that Amber completed a $300 million funding round in December. Amber sent a message to SCMP saying that it is "anticipating" and preparing for a very conservative position so it can go the long way, even if that means it has to return to its core business fundamentals. Other crypto exchanges, such as Crypto.com and Coinbase, have announced significant staff reductions in recent weeks. Binance also stated that it is "preparing itself for an extremely conservative position, so that it can go the long mile, even if it means having to return to core business fundamentals during this period." Genesis, a crypto lender, will be significantly reducing its workforce amid fears it will file bankruptcy. This comes after FTX caused a liquidity squeeze. Silvergate Capital, a crypto-friendly bank, reported a $1B fourth-quarter loss. This was due to the FTX crash that sparked a run in 2022 which saw customers withdraw $8.1 billion.