CoinFLEX is cutting staff globally to optimize costs
The company announced on its social media page that some of the staff at cryptocurrency platform CoinFLEX would be fired.
The staff cuts and non-staff costs that we have made will reduce our cost base by approximately 50-60%. The majority of the team that remain are focused on product and technology, which remains the core of our business.the company said.
It is worth noting that in early June 2022, since market conditions were “extreme” and due to “uncertainty about the counterparty”, the company had to suspend the ability to withdraw user funds. The company announced issuing a rvUSD token to solve this problem.
As it was revealed later that the counterparty turned out to be Roger Ver, the creator of Bitcoin.com. According to the head of the company, Mark Lamb, Ver owed the platform about $47 million. Because he failed to fulfill his obligations, a notice of default was sent in his name. In July 2022, the company had to appeal to the International Arbitration Centre in Hong Kong to get the necessary amount from the debtor.
In mid-summer, it was possible to withdraw funds from the platform again. Still, CoinFLEX could not recover from the damage suffered, and now a significant part of the company’s employees will be dismissed not only from the head office but also from offices around the world.
According to company representatives, all costs will be monitored to improve operations and scale up to the original volumes in the future.
