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Layoffs, Frozen Assets and Attempt to Sell Assets Without SBF’s Approval; The FTX Domino Effect Continues

It hasn’t been an easy week, that’s the least one could say. In fact, the FTX/Binance war continues to haunt the crypto space with its domino effect, leading to not-so-ideal outcomes. 

New updates include:

Coinbase on another layoff spree

To start with, Coinbase announced that it is laying off more than 60 recruiting, onboarding employees amid a turbulent market startled by the possible demise of cryptocurrency exchange FTX.

The job cuts, the second time this year, follow a week after “crypto market headwinds” contributed to Coinbase’s net loss of $544.6 million for the three months ended Sept. 30, compared to a profit of $406.1 million a year ago.

“The job cuts will help operate as efficiently as possible,” the spokesperson said.

The employees affected would receive generous severance packages, according to a company spokesperson. 

In June, Coinbase cut 1,100 jobs, or 18% of its workforce, and its chief product officer departed as the exchange restructured its product team in early November. This happened weeks after it said it would extend a hiring freeze and rescind a number of accepted offers, according to The Block.

Bahamas securities regulator freezes FTX assets

The Securities Commission of The Bahamas (SCB) — the country’s securities regulator — froze the assets of FTX Digital Markets (FDM) and “related parties” on Nov. 10 and suspended FTX’s registration in the country, according to Cointelegraph.

In a statement, the SCB said it was aware of “public statements suggesting that clients’ assets were mishandled, mismanaged and/or transferred to Alameda Research.”

The SCB has now stripped powers from the directors of FTX and said it determined the “prudent course of action” was to put FTX into a provisional liquidation “to preserve assets and stabilize the company.”

According to the statement, the Bahamian Supreme Court appointed a provisional liquidator and said, “no assets of FDM, client assets, or trust assets held by FDM can be transferred, assigned, or otherwise dealt with, without the written approval of the provisional liquidator.”

FTX is headquartered in the Bahamas and FTX Digital Markets is the Bahamian subsidiary of the exchange with FTX US a separate United States-based entity.

The SCB said it will work with the appointed liquidator to “obtain the best possible outcome for the customers and other stakeholders of FTX.”

Shocking: FTX US employees attempt to sell assets in CEO’s absence

Employees working for the U.S. arm of FTX’s cryptocurrency exchange business are trying to sell company assets, in some cases without CEO Sam Bankman-Fried‘s “participation,” according to Bloomberg News, which cited two people familiar with the matter.

Pitched assets including stock-clearing platform Embed and the naming rights to an arena in Miami, the report said.

While FTX has descended into chaos in recent days after a failed takeover by rival Binance, the embattled crypto CEO has stressed that the American branch of FTX is separate from the global brand and in good financial health, according to The BLOCK.

“FTX US, the US based exchange that accepts Americans, was not financially impacted by this shitshow. It’s 100% liquid. Every user could fully withdraw (modulo gas fees etc). Updates on its future coming,” Bankman-Fried wrote in a thread Thursday.

News Desk

Unlock News Desk, is a group of Blockchain and Crypto enthusiastic young people, working to keep Unlock readers up to date with the industry news. Connect with the team via email: info(@)

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