FalconX cuts 10% of workforce amid prolonged crypto market slump: Report
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
FalconX, a digital asset prime brokerage and owner of crypto ETF issuer 21Shares, has laid off about 10% of its global workforce amid an ongoing cryptocurrency market slump, according to Bloomberg. The company is also shifting its strategy in Singapore to focus on crypto derivatives trading and plans to withdraw its license application with the Monetary Authority of Singapore. FalconX aims to maintain its presence in Asia while expanding in Europe.
Why it matters
This workforce reduction highlights the continued challenges faced by crypto companies during the prolonged market downturn. FalconX’s strategic pivot toward derivatives trading and scaling back regulatory ambitions in Singapore reflect broader industry adjustments as firms seek to adapt to falling trading volumes and changing business dynamics. The layoffs add FalconX to a list of crypto firms reducing operations in response to market pressures.
Key context
Before the layoffs, FalconX employed around 350 people across the US, UK, Singapore, and Hong Kong. The crypto market has seen significant declines from last year’s highs, with Bitcoin trading roughly 50% below its peak from October. Other crypto companies such as Coinbase, Crypto.com, Luno, Gemini, and BitGo have also cut staff amid market volatility. Many exchanges are expanding beyond spot trading into areas like derivatives and tokenized assets, reflecting a shift in business models due to changing demand.
Key numbers and entities
FalconX laid off about 10% of its workforce, which numbered approximately 350 before the cuts. Bitcoin traded below $64,000, about half of its October peak above $126,000. The crypto TradFi sector grew fivefold to $6.6 billion between January 2025 and June 2026. Other companies mentioned include Coinbase, Crypto.com, Luno, Gemini, BitGo, and 21Shares.
What remains unclear
Bloomberg cites unnamed sources and FalconX did not respond to requests for comment, so details on the internal decision-making or financial impact remain unspecified. The long-term effects of FalconX’s strategy shifts and license withdrawal plans, as well as the full scope of its future operations in Asia and Europe, are not detailed. The source does not flag further open questions.