The Ledger: Nexo faces pressure in Bulgaria, Coinbase cuts 950 employees

Nexo is under pressure in Bulgaria, $5bn of FTX’s missing funds have been located, and Coinbase is cutting nearly 1,000 people.

Nexo, another beleaguered cryptocurrency exchange, ran into yet more trouble this week, as Bulgarian authorities raided its offices in Sofia, alleging several criminal offenses.

The company has denied all wrongdoing, calling the country “the most corrupt” in the European Union.

While the cryptocurrency sector is still in a bear market, some companies, including Iceberg Capital and Venom Foundation are signalling confidence in the future.

The companies have set up a $1bn fund that will help promising startups gain an initial round of funding to help them get on their feet.

US cryptocurrency exchange Coinbase, which is struggling to maintain its operations as the bear market continues, announced a dramatic reduction in its workforce with 950 employees to be let go by the company.

Coinbase cited “adverse macroeconomic conditions”, an argument that the company has used on several previous occasions., yet another exchange, said that it is delisting the popular USDT stablecoin token at the behest of Canadian regulators.

The Tether token is pegged to the value of the US dollar and holds bigger market share than its main competitor, USDC.

As crypto exchanges are reducing the number of their employees, a realization has dawned across the industry – the compliance teams are not dispensable.

This is why the meltdown of cryptocurrency exchange FTX has triggered a dash for compliance across the industry, with exchanges doubling down on expanding their anti-money laundering and know-your-customer teams or, at the very least, maintaining their current numbers.

The deaths of four crypto billionaires over the past few months have given rise to rumors that their demise may not have been random, but rather – part of a conspiracy. At least two of the four died in what could be seen as “suspicious circumstances”.

Meanwhile, Binance and hedge funds that have worked with the companies are allegedly under investigation by US authorities.

No immediate enforcement action is expected to befall the parties, but regulators are looking to increase their supervision of the sector following the FTX fiasco.

FTX may have recovered some of the consumer funds that went missing because of its former boss’s high-handed approach. The company’s attorney told a US bankruptcy judge in Delaware that around $5bn of the missing consumer funds had been “located”.

The exact amount of missing consumer funds still remains a moving target, the attorney admitted.

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Written by Alex


Alex is a well-rounded crypto writer who focuses on general market and legal developments. His main interest lies in how crypto gaming can become a more permanent part of the gaming landscape and how blockchain holds benefits to players they are not even aware of.

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