Texas-based Bitcoin (BTC) financial services company Unchained Capital which claims to have no exposure to bankrupt cryptocurrency exchange FTX has announced a reduction of its headcount.
According to Joe Kelly, the Chief Executive Officer (CEO) of the blockchain-based financial service provider, Unchained Capital has decided to cut its staff strength by 15% even as the bearish market takes its toll.
“These past few weeks and months have been an unprecedented time for Unchained and our industry. We’ve watched multiple lenders and exchanges fall under the weight of dangerous leverage, counterparty risks, and losses through third-party custody. It’s noteworthy how so many once high-flying, fast-growing firms have now crumbled,” the CEO detailed.
“we find ourselves having to make another hard decision today: we are reducing our overall workforce by roughly 15%,” he added
Unchained Capital is taking this step as a measure to gain stability and manage its business amidst the overbearing crypto winter which has grown worse since the implosion of FTX.
Kelly attributed the headcount reduction to limitations that the company encountered while attempting to access funding for BTC-backed loans. Similarly, the constraints are due to the general downtrend that the crypto industry has been faced with for almost a year now.
Unchained Capital is Still Over-Collateralized
With all that is presently going on, Unchained Capital has clarified that its loan book is still over-collateralized with a collateral-to-principal ratio of 214%.
The CEO of the BTC lender and custodian allayed the fear in the minds of its customers by explaining that Unchained Capital has no exposure to either FTX Derivatives Exchange, its sister firm Alameda Research or any other company that has mishandled and lost clients’ funds.
Unchained Capital job cut is one of the few which happened following the bankruptcy filing of FTX. So far, many companies have suffered due to the FTX contagion either directly or indirectly.
Solana-based Non-fungible token (NFT) protocol Metaplex has equally laid off a large percentage of its staff. Metaplex announced that its treasury is intact and has not been impacted by the FTX Derivatives Exchange implosion.
Likewise, Sam Bankman-Fried, the founder of the now-bankrupt FTX has resigned from his position as CEO.
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