FalconX Axes 10% of Staff Amid Crypto Market Downturn

Digital asset prime brokerage FalconX has implemented cost-cutting measures by laying off around 10% of its global workforce as it prepares for a prolonged downturn in the cryptocurrency market.

The company, which employed approximately 350 people across the US, the UK, Singapore, and Hong Kong before the layoffs, is also revising its business strategy in Singapore. FalconX will focus on crypto derivatives trading and withdraw its licence application with the Monetary Authority of Singapore, while continuing its operations in Asia and expanding its presence in Europe.

This move comes less than a year after FalconX acquired crypto exchange-traded fund (ETF) issuer 21Shares, and it adds to the growing list of cryptocurrency firms that have reduced headcount amid weaker market conditions. Companies like Coinbase, Crypto.com, Gemini, Luno, and BitGo have also announced job cuts or restructuring measures as the industry grapples with declining trading activity.

The crypto sector has faced mounting pressure after Bitcoin retreated significantly from its recent highs, resulting in lower trading volumes and weaker retail investor participation. Analysts suggest that market volatility may continue, prompting firms to reassess costs and business priorities. In response, many cryptocurrency companies are diversifying beyond spot trading by focusing on products such as crypto derivatives, tokenised assets, and other financial services linked to digital assets.