Embattled crypto derivatives exchange CoinFLEX is announcing employee layoffs amid a legal battle with ‘Bitcoin Jesus.’
In a new blog post, CoinFLEX says it is laying off a significant number of employees across the board as a means of reducing overhead costs.
“We, unfortunately, had to let go of a significant number of the CoinFLEX team across all departments and geographies. The staff cuts and non-staff costs that we have made will reduce our cost base by approximately 50-60%. The majority of the team that remain are focused on product and technology, which remains the core of our business.
We will monitor costs to ensure we operate as efficiently as possible and scale as volumes come back. The intention is to remain right-sized for any entity considering a potential acquisition of or partnership opportunity with CoinFLEX.”
CoinFLEX says it’s experiencing financial troubles because one customer, known as ‘Bitcoin Jesus’ for his early advocacy of the king crypto, failed to pay back a substantial debt.
The crypto firm says it’s currently in arbitration with the customer in Hong Kong to potentially recover funds after they couldn’t liquidate his positions.
“We tried to liquidate his account in a prudent manner using counterparts on the exchange but as the positions were so significant, they involved slippage as any large or series of large orders would reasonably create.
Throughout the process, we kept the individual fully informed and he had cooperated with us and...
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