Crypto firm Consensys to cut 20% of workforce amid macroeconomic, regulatory headwinds
10/30/2024 00:32
The decision will impact 162 of a total of 828 employees at the company, Consensys CEO Joseph Lubin told Reuters in a mailed statement. Crypto companies have frequently accused the Securities and Exchange Commission of regulatory overreach and exceeding its jurisdiction, while the agency argues that the industry is disregarding securities laws designed to protect investors and other market participants. "Multiple cases with the SEC, including ours, represent meaningful jobs and productive investment lost due to the SEC's abuse of power and Congress's inability to rectify the problem," Lubin said in a blog post.
(Reuters) -Cryptocurrency firm Consensys said on Tuesday it would cut 20% of its total workforce, citing broader macroeconomic pressures and ongoing regulatory challenges facing the industry.
The decision will impact 162 of a total of 828 employees at the company, Consensys CEO Joseph Lubin told Reuters in a mailed statement.
Crypto companies have frequently accused the Securities and Exchange Commission of regulatory overreach and exceeding its jurisdiction, while the agency argues that the industry is disregarding securities laws designed to protect investors and other market participants.
"Multiple cases with the SEC, including ours, represent meaningful jobs and productive investment lost due to the SEC's abuse of power and Congress's inability to rectify the problem," Lubin said in a blog post.
"Such attacks from the U.S. government will end up costing many companies that have been investigated, sued, or sent Wells Notices, many millions of dollars," he added.
A spokesperson for the SEC declined to comment on the allegations.
The crypto firm added that elevated interest rates, inflationary pressures, and tightening liquidity have created a more "cautious macroeconomic environment." It also noted that the lack of regulatory frameworks in certain markets complicates operations.
In April, Consensys filed a lawsuit against the SEC related to the regulation of the Ethereum blockchain, following a formal notice from the agency indicating plans to pursue an enforcement action against the firm.
The SEC had also sued Consensys in June, alleging the company has failed to register as a broker through its MetaMask swaps service.
Consensys, founded by Lubin, is an Ethereum-focused blockchain firm that offers products enabling developers, enterprises, and users to build applications for the "Web3" space.
One of its key products is the popular MetaMask self-custodial crypto wallet, which allows crypto holders to store assets, as well as buy, send, and swap tokens.
(Reporting by Pritam Biswas in Bengaluru; Editing by Maju Samuel)