Cryptocurrency firm PayBit plans to cut its workforce by 30 percent as declining markets exacerbate the asset class, said co-founder and CEO Ben Zhu.
And the “Bloomberg” news agency quoted Zhu as saying yesterday that these steps come within the framework of a reorganization that is currently underway with the aim of refocusing efforts, explaining that the reduction in employment will be comprehensive, adding that the priority is to ensure that operations are not affected and that customer assets remain safe.
Zhu attributed the move to the slump in cryptocurrency prices and the suffering of companies like bankrupt cryptocurrency lender Blockfi and distressed digital asset brokerage Genesis as signals “telling us that we are entering a colder winter than we expected from both an industry and market perspective.” .
This comes at a time when former FTX CEO Sam Bankman-Fred apologized for “a large number of mistakes” in the sudden collapse of the cryptocurrency company, but confirmed that he did not intend to commit any fraud.
“I’ve never tried to defraud anyone,” Bankman-Fred said at the Delbuque Conference hosted by CNBC and The New York Times.
“I feel deeply sorry for what happened,” he added.
Bankman Fred, who appeared via video from the Bahamas wearing a T-shirt bearing his trademark, explained that he was shocked by the many details revealed when the cryptocurrency platform collapsed, considering the problems resulted from lax oversight and company controls, and not from the intention of fraud.
FTX filed for bankruptcy on November 11, while facing a major funding shortfall and a flood of withdrawals from panicked clients.
At the time, FTX took about $10 billion in client funds without permission, according to the Wall Street Journal.
Most of the attention focused on the relationship between FTX and Alameda Research, its trading subsidiary.
Bankman-Fried acknowledged that not paying enough attention to the conflicts of interest between the two companies was embarrassing, but insisted he was not familiar with the details of Alameda and did not take over the management of the company.