The past five days were action-packed with not always the best of news. Crypto companies and their employees need to brace for the difficulties ahead.
Crypto exchange Luno announced this week that it is reducing its workforce by around 35%, or more than 300 people.
The exchange is the latest to be caught in the lay-off wave that has seized the crypto world, including Coinbase, Bybit, Gemini and FTX.
Binance, a prominent cryptocurrency exchange, is said to have processed $346m worth of crypto assets for Bitzlato, a now shut-down crypto exchange linked to to illegal funds from the Russian underworld, adding to the pile of troubles that Binance is already facing.
Meanwhile, it has transpired that BlockFi had greater exposure to FTX than previously thought. A leaked document outlined the full extent of the company’s dependency on the beleaguered exchange.
The week did not go without another mention of crypto exchange Gemini, which has been in a dispute with lender Genesis over $900m of locked consumer funds which were frozen around the time that FTX came under investigation.
Gemini has also announced that it is reducing its workforce by another 10% as it expects the downturn in crypto markets to continue.
The Federal Bureau of Investigation has accused North Korean hackers over a recent hack that resulted in a $100m crypto heist from US firm Harmony.
This is the latest attack on US companies by North Korean criminal organizations which have been turning to crypto to get around financial sanctions that have suppressed the country’s economy for years.
Revolut has decided to wait on its RevCoin token while it’s clearing up some final details, as the company is also observing the current status of the crypto industry. However, Revolut has confirmed that its proprietary crypto token will launch before long.
Meanwhile, the US Securities and Exchange Commission has accused a trader for manipulating the Mango Markets exchange and manipulating the value of the native MNGO token which resulted in millions of dollars in losses for the company.
Irish central bank boss Gabriel Makhlouf, expressed concerns over the advertisement of cryptocurrencies targeted at young adults this week, calling for them to be banned.
While the top banker argued that presently participation in crypto by young people was not so bad, he said that those people tend to be the most vulnerable to the excessive crypto advertisement that is directed at them.
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