Crypto derivatives exchange platform BitMEX has further reduced its headcount to refocus on building a vibrant derivative community.
The derivatives exchange platform will axe about 30% of its employees according to a report by the Block.
BitMEX adopted the measure to pivot away from its “beyond derivatives” strategy which focuses on spot trading, brokerage, and custody services. The platform will now concentrate on providing improved crypto derivatives trading experience for its clients.
The statement by the firm described the affected employees as instrumental to BitMEX’s development from its inception and its priority is therefore to ensure the affected staff gets the support they require.
The news of this layoff comes a week after its CEO resigned from the position. Recall that Alexander Höptner, the Chief Executive Officer of cryptocurrency exchange BitMex stepped down from the role two years after his appointment. He was replaced by the Chief Financial Officer of the exchange Stephan Lutz who is now acting in the interim while still operating in the office of a CFO.
Before this recent layoff, BitMEX had earlier in the year trimmed its workforce by about a quarter. The exchange platform laid off about 75 members of its staff in April after its plan to acquire Bankhaus von der Heydt – one of the oldest German banks failed.
Meanwhile Greg Dwyer, a former executive at the derivatives exchange firm, recently pleaded guilty to his role in an enforcement action against the trading platform. Greg, alongside other executives, was accused of being complicit in running a trading platform that clearly violates the United States Bank Secrecy Act (BSA).
Although BitMEX has settled with regulators after paying a hefty fine, Greg who initially said the accusations were baseless now awaits sentencing on November 10.
With the prolonged winter causing a liquidity crisis for firms, laying off workers have been a common route for crypto firms in an attempt to strike a balance. Recently, crypto investment management and trading firm NYDIG laid off 33% of its employees while California-based renowned investment and trading platform Robinhood also laid off 23% of its employees citing inflation and the crypto market crash.