Anchorage Digital Cut 20% Of Staff In A Market Crisis

Key Points:

• Anchorage Digital is cutting off around 20% of its workforce, or 75 workers, as a result of the ongoing digital asset crisis.
• The company is considering removing the use of support for other properties.

According to Bloomberg, Anchorage Digital, a crypto custodian bank, is laying off employees due to the continuous decline in digital assets.

The financial services company said on Tuesday that it is cutting off around 20% of its workforce, or 75 individuals, citing the unclear crypto regulatory environment in the United States as a reason for its decision.

The layoffs are part of a corporate restructure that will take many months to complete and are unconnected to recent news banking events, a spokesperson for Anchorage Digital confirmed to Blockworks.

The company said that it is now contemplating eliminating the use of support for assets, including Litecoin, since the company has to be the most concerned for consumers in the current and anticipated market field.

Moreover, it was announced that Anchorage would diminish its attention on NFT.

“Our business has seen low institutional demand for certain classes of digital assets, and as a result, Anchorage Digital will reduce focus on them. This includes general demand for NFTs, which means that after a recent NFT feature release, we will reduce investment in future institutional functionality,” an Anchorage spokesperson said to Blockworks.

Anchorage told Bloomberg in a statement:

“For us, that emphasis means steadfastly on our standing as an unambiguous qualified custodian, among other safe and regulated methods for institutions to engage in the digital asset ecosystem.”

Anchorage’s personnel cut demonstrates how tough things are for crypto banks right now. On Sunday, the government seized Signature Bank after authorities lost trust in management.

Silvergate said earlier this month that it is seeking to wind down its operations and liquidate its bank after a regulatory investigation, significant losses, and the closure of its cryptocurrency payments network.

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Harold

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