Faced with this bear market, BlockFi announces in turn that it is laying off staff. It is a reduction in staff that represents 20% of its employees. In parallel, it also reassures its customers on its solvency, following concerns about Celsius.
BlockFi is laying off 20% of its employees
The US platform BlockFi has issued a press release, saying it is laying off 20% of its staff. Like other companies in the cryptocurrency sector, this move comes as part of the market environment.
As a result, the company, which previously had around 850 employees, is seeing its workforce reduced to 600 employees. Just as Coinbase did last week, BlockFi has set up a database, to allow employees it lays off to find jobs:
“We know these people are some of the brightest minds in crypto and fintech and we’re working to make sure they find a new opportunity when they’re ready. Relevant team members can choose to include their details in a directory of people looking for new roles. “
This directory will be used by the Human Resources department to send profiles as referrals to various contacts in companies that are hiring.
The platform reassures its users
BlockFi’s core business is in lending and borrowing cryptocurrencies, on decentralised finance (DeFi) protocols, to enable its customers to generate returns. Through its platform, it allows individuals and institutions alike to benefit from the advantages of DeFi in a centralised manner.
This business model has enabled it to gather more than 650,000 clients worldwide. While the competitor Celsius, which offers a similar business model, is in turmoil, it was legitimate to ask what BlockFi’s position was with regard to its users’ finances.
The company clarified the situation by informing that it is not exposed to Celsius in any way. Nor does it own stETH, the liquid representation of an ETH locked on the Lido platform, which is currently decoupling from its underlying:
To address concerns raised due to the actions of other platforms in our industry, we wanted to share the following:
1) BlockFi has no exposure to Celsius and we have never worked with them as a partner.
2) BlockFi does not hold any stETH principally or as collateral.
– BlockFi (@BlockFi) June 13, 2022
It also reminds us that it is currently working on its compliance with the Securities and Exchange Commission (SEC). This implies a certain obligation of transparency towards its clients.
In any case, despite the difficult situation, BlockFi is committed to ensuring the continuity of its services and intends to get through this difficult period, to emerge stronger.
