Digital Assets: More Entities Halt Withdrawals, Layoff Staff Amidst The Crypto Bear Market

July 20, 2022 | Digital Assets, News

The fallout from spectacular crypto failures such as Terra and Three Arrows Capital is engulfing more market participants.

Even while bitcoin, the leading cryptocurrency is enjoying some bullish tailwinds that have nudged it above the $24K level, news flow in the digital assets market shows it may still be premature to call an end to the so-called crypto winter that commenced in November last year.

Skybridge Capital slams the brakes on withdrawals at a fund

Anthony Scaramuci’s Skybridge Capital has reportedly halted withdrawals from Legion Strategies, one of its small funds with £230 million in assets.

Legion is said to have a 25% exposure to crypto through other Skybridge-managed funds including vehicles focused on bitcoin, ether and algorand. It also holds various private market investments including crypto exchange FTX that would be difficult to liquidate in the event of unprecedented redemption requests.

Crypto exchange Zipmex halts withdrawals

Cryptocurrency exchange Zipmex, which operates in Singapore, Australia, Indonesia, and Thailand, has paused all withdrawals due to “volatile market conditions, and the resulting financial difficulties of our key business partners.”

Zipmex said today in a tweet: “Due to a combination of circumstances beyond our control including volatile market conditions, and the resulting financial difficulties of our key business partners, to maintain the integrity of our platform, we would be pausing withdrawals until further notice.”

Fresh wave of layoffs at Gemini

Gemini, the crypto exchange founded by the Winklevoss twins, is said to have laid off another 68 employees, or about 7%.

However, according to sources, more positions could be culled as the company targets a workforce size of 800 people amidst “extreme cost-cutting” policies.

It may be recalled that in early June, Gemini had let go of 10% of its workforce.

“This is where we are now, in the contraction phase that is settling into a period of stasis — what our industry refers to as “crypto winter,” Gemini’s announcement had said.

“This has all been further compounded by the current macroeconomic and geopolitical turmoil. We are not alone.”

Related Story: Gemini, The Crypto Exchange Founded By The Winklevoss Twins, Lays Off 10% Of Staff

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