Swyftx cuts 40% of staff as it braces against 'worst-case scenario'

Australian-based crypto speech Swyftx has laid disconnected a full of 90 unit members, which it said was successful mentation for a “worst-case scenario” caused by the fallout of FTX and a imaginable autumn successful planetary trading volumes adjacent year. 

The quality was shared by Swyftx co-CEO Alex Harper successful a Dec. 5 statement, noting that contempt not having immoderate vulnerability to FTX, the institution was “not immune” to the fallout implicit the bankrupt exchange, adding:

“As a result, we person to hole successful beforehand for a worst-case script of further important drops successful planetary commercialized volumes during H1 adjacent twelvemonth and the imaginable for much achromatic swan-type events.”

A Swyftx spokesperson told Cointelegraph that the 40% unit chopped was besides successful anticipation of a autumn successful trading volumes, contempt these figures expanding successful November.

“We person fto spell of unit successful anticipation of a perchance crisp autumn successful planetary commercialized volumes successful the archetypal fractional of 2023 and further aftershocks from FTX’s collapse," said the spokesperson.

Harper successful the connection said the pugnacious determination was indispensable successful bid to get done the prolonged crypto winter:

“Our concern is uniquely well-positioned to upwind events similar FTX [...] But arsenic overmuch arsenic we mightiness privation it, we bash not beryllium successful isolation from the marketplace and that’s wherefore we are acting accelerated and acting aboriginal by importantly reducing the size of our team.”

The Swyftx spokesperson reiterated that the company’s equilibrium expanse remained intact contempt it being indirectly affected by the FTX collapse, adding:

“Just for clarity, I should accidental we person nary vulnerability to FTX. We clasp lawsuit funds 1:1 and don’t lend lawsuit assets to 3rd parties.”

Harper besides revealed that his institution would go much risk-averse successful its concern decisions and that the unit cuts would easiness operational costs connected its equilibrium sheet.

“Swyftx maintains beardown gross but we’re not consenting to instrumentality immoderate risks post-FTX and are being exceptionally cautious astir costs adjacent year,” added the spokesperson, who besides noted that precedence areas similar security, compliance and lawsuit enactment services wouldn’t beryllium affected.

As for who was laid off, a Swyftx spokesperson told Cointelegraph that the firm’s probe and improvement squad was astir affected by the unit cuts.

Related: AAX clients tempest exchange's bureau successful Lagos pursuing operations halt

The latest unit layoffs travel different question of layoffs successful Aug. 2022, which saw 74 employees leaving the firm, accounting for 21% of its unit astatine the time. 

In August, Harper said the institution “grew excessively fast” successful 2021 erstwhile the marketplace peak, but “we are simply acold larger than we request to beryllium to run and grow.”

Digital Surge halts withdrawals

Meanwhile, different Australian-based trading level Digital Surge, which halted withdrawals connected Nov. 16, has been different institution successful Australia impacted by the FTX contagion.

The crypto speech confirmed connected Nov. 16 that it has suspended deposits and halted withdrawals, promising customers they’d springiness much details wrong 2 weeks.

However, arsenic astatine the clip of writing, the institution has yet to supply immoderate further accusation publicly.

Cointelegraph has reached retired to Digital Surge for remark but has not received an contiguous response.