National Power Administration (ANDE) employees have been accused of participating directly in setting up illegal bitcoin mining farms in Paraguay. According to local sources, seven engineers of the institution would have been installing bitcoin farms across the country as the prosecutor’s office is carrying out this investigation with ANDE’s cooperation. Seven ANDE Engineers Involved in […]
Bitcoin News
Kraken Calls Security Research Firm’s Demands ‘Criminal’; Certik Slams Threats Against Its Employees
Kraken has accused an unnamed security research firm of stealing million from its treasury and attempting to extort more money. Nick Percoco said so-called white hat hackers failed to fully disclose the bug transaction details and have not made arrangements to return the stolen funds. White Hat Hackers Refuse to Abide by Rules The […]
Bitcoin News
Paxos Lays Off 65 Employees Following Yield-Bearing Stablecoin Launch
According to sources familiar with the matter, the stablecoin issuer Paxos is cutting 20% of its workforce. This development comes on the heels of Paxos International’s announcement of its yield-bearing stablecoin. Paxos Trims Workforce by 20% Bloomberg reports that Paxos has laid off 65 employees, which accounts for 20% of its staff. The information was […]
Bitcoin News
Nigerian Fintech Startup Chipper Cash Lays Off Employees in US, UK
The Nigerian fintech startup, Chipper Cash, recently abolished the roles of 20 workers based in the U.S. and U.K. The CEO Ham Serunjogi said this decision aligns with its goal of maintaining high operational efficiency and moves the startup closer to profitability. Layoffs Set Chipper Cash on Course for Positive Cash Flow in the First […]
Bitcoin News
Ebay’s Web3 Division Reportedly Lays off 30% of Its Employees
Recently, Ebay, the e-commerce behemoth, implemented significant changes within its Web3 division. These changes resulted in a 30% reduction in the division’s workforce and the departure of a pivotal employee. Among those affected by this restructuring is David Moore, the founder of Knownorigin, a marketplace for non-fungible tokens (NFTs), whose post is redundant. Ebay’s Dedication […]
Bitcoin News
Nigeria’s Fintech Startup Paystack Cuts Workforce, 33 Employees to Depart
The Nigerian fintech startup, Paystack, will be scaling down its operations outside Africa. In addition, Paystack will part ways with at least 33 employees based in Europe and the United Arab Emirates. Co-founder Shola Akinlade has promised to help affected employees secure new roles elsewhere.
‘Localizing Costs and Getting Closer to Customers’
The payments fintech startup, Paystack, recently said it is downsizing its operations outside Africa and will let go a total of 33 employees based in Europe and the United Arab Emirates (UAE). Shola Akinlade, who also goes by the name Shollsman on the social media platform X, said the company’s renewed focus on Nigeria is intended to “localize costs and get closer to customers.”
In an announcement shared via social media, Akinlade said Paystack had taken steps to ensure a soft landing for the retrenched workers. He explained:
“We’re sparing no expense to minimise disruption to the lives of team members. The severance package includes 4 months’ salary, accelerating equity vesting, extending health insurance by 3 months, and more.”
Today was a difficult day at Paystack.
We’re reducing our operations outside of Africa, and will be parting ways with up to 33 employees in Europe and the UAE.
In the last 3 years, our hiring philosophy was to recruit great talent regardless of location, including opening an…
— shollsman (@shollsman) November 16, 2023
By parting ways with some of its talented employees, Paystack, which was acquired by Stripe in 2020, joins a growing list of Nigerian fintech startups which have either shut down completely or significantly reduced their headcount. As reported by Bitcoin.com News, some of these startups have attributed the worker retrenchments to the so-called crypto winter.
Meanwhile, the Paystack co-founder said his immediate task now is to help the affected employees secure new roles elsewhere as soon as possible. On the social media platform X (formerly Twitter), the key talking point for some users is Akinlade’s empathy towards the affected workers.
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NFT Giant Opensea Retrenches an Unknown Number of Employees
Opensea recently retrenched an unknown number of employees as part of what the CEO Devin Finzer describes as a rebuilding exercise. According to the CEO, taking this step helps Opensea build a foundation which enables it to innovate faster.
Smaller Team With Direct Connection to Users
Opensea, one of the largest non-fungible token (NFT) marketplaces, recently parted ways with some of its long-serving employees as part of a rebuilding exercise. According to Devin Finzer, the co-founder and CEO of Opensea, the objective of the exercise is to have “a smaller team with a direct connection to users.” Finzer said while the departure is the “most difficult part of this change,” taking this step helps Opensea build a foundation which enables it to innovate faster.
Finzer’s confirmation of the workers’ retrenchment is coming at a time when the NFT hype continues to fizzle out. As recently reported by Bitcoin.com News, the NFT sales, which have been trending downwards since February 2023, went down by 21% in October. The flagging NFT sales have seen one of Opensea’s biggest investors Coatue mark down its investment by 90%.
However, in a statement shared via X (formerly Twitter), the CEO appeared to shrug off fears that Opensea will continue to see reduced sales revenues.
“We’re making these changes with our community in mind. As we rebuild, we’ll continue supporting our existing products, and will be iteratively testing Opensea 2.0 in public — remaining nimble, attentive, and focused,” Finzer said.
The CEO added that his organization is now working on “re-orienting the team around” the upgraded product.
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Ethereum Co-Founder, Consensys Sued By Early Employees Over Alleged Equity Promises
More than two dozen early employees of the blockchain software company Consensys have filed a lawsuit against Ethereum co-founder Joseph Lubin, Consensys, and other parties. The plaintiffs allege Lubin broke contractual promises related to equity compensation made when the employees joined the company in its formative years starting in 2014.
Ethereum Co-Founder Joseph Lubin Faces U.S. Lawsuit
The lawsuit filed in New York comes as Consensys, now valued at over billion, has evolved from its early experimental structure to a more traditional centralized company. The lawsuit was filed on October 19, 2023, in New York state court by 27 former Consensys employees.
The court filing names Joseph Lubin, Consensys, and JPMorgan Chase as defendants. The plaintiffs claim Lubin induced them to join Consensys in its early days with offers of equity in the parent “hub” company Consensys AG.
The former staff members allege Lubin promised this equity would not be diluted. However, in 2020 Consensys restructured, reportedly moving key assets to a new Delaware entity Consensys Software Inc. (CSI). The plaintiffs claim they were largely excluded from the restructuring, leaving their shares in the original Consensys AG far less valuable.
“Lubin made a similar offer to each plaintiff in connection with his or her joining Consensys; plaintiffs accepted the deal, and an agreement was formed,” the lawsuit details.
Lubin allegedly broke a deal that early employees would “win or lose – together – alongside Lubin and Consensys.” The suit claims “Finance took precedence over founding employees.” It seeks damages for breach of contract and fiduciary duties.
It’s not the first instance where Consensys and Lubin have faced such allegations. On March 1, 2022, a collective of thirty-five ex-staffers, accounting for over half of all recognized Consensys AG (CAG) stakeholders, lodged a petition for a distinctive review in line with article 697a and following sections of the Swiss Code of Obligations. The intent? To delve deep into significant discrepancies within CAG.
A spokesperson for Lubin and Consensys fervently refuted the allegations, describing them as “frivolous” in an email sent to Bloomberg. “After two years of getting nowhere with their frivolous claims against Consensys Mesh in a Swiss court, plaintiffs now believe their merit-less claims stand a better chance of yielding a pay day if they game U.S. courts and entangle Consensys Software and other unrelated parties in litigation,” the spokesperson stressed.
What do you think about the lawsuit against Lubin and Consensys? Share your thoughts and opinions about this subject in the comments section below.
Bankrupt FTX Exchange Turns Its Attention To Employees, Here’s How Much It Wants
It’s been almost a year since the collapse of FTX, but the failed crypto exchange continues to be surrounded by drama. In a flurry of moves to claw back funds for investors, FTX lawyers are now going after employees of Salameda Ltd.
According to court filings, the employees of Salameda – a Hong Kong-incorporated entity allegedly controlled by former FTX CEO Bankman-Fried, named as defendants were prioritized over other customers as many raced to withdraw their assets from the exchange before its imminent crash on November 11, 2022.
FTX Wants 0 Million Back
The filing alleges Michael Burgess, Matthew Burgess, Kevin Nguyen, and Darren Wong, all former employees of Salameda, fraudulently withdrew assets in their FTX accounts just hours before bankruptcy. Court filings suggest that while the defendants worked for Salameda, they were effectively employees of the FTX Group, as they worked in senior-level roles at FTX Group companies.
Before its imminent crash, FTX had been under public scrutiny as many investors had concerns about the exchange’s liquidity and solvency. This prompted many FTX.com and FTX US customers to make withdrawal requests leading up to billions of dollars.
As the backlog grew, many had to wait for days for their withdrawals to be processed, with some not receiving their money before the exchange filed for bankruptcy. However, court documents show that the defendants received the benefit of withdrawals ahead of other customers due to their connections to FTX Group executives.
Personal messages show one of the defendants, Matthew Burgess, urging other employees to expedite a pending withdrawal request for million from one of Michael Burgess’s accounts on the exchange.
The defendants were able to withdraw 7.3 million based on pricing as of August 31, 2023, with the majority of those coming withdrawn on or after November 7, 2022. FTX attorneys are now demanding the full amount be returned, arguing that the funds were improperly transferred to the defendants without the required procedures being followed.
Trying To Recover
Since filing for bankruptcy in November 2022, FTX has filed several lawsuits hoping to claw back money to pay some of its investors and customers. The exchange’s attorneys filed a similar case in July, as it went after executives of its European subsidiary in a bid to recover 3 million.
Lawyers recently went after Sam Bankman-Fried’s parents, accusing them of misappropriating funds from the exchange while it was still in operation. However, the parents, both law professors at Stanford Law School, dismissed the claims as completely false. Sam Bankman-Fried is set to be tried in court starting on October 3 for eight charges brought against him.
Binance Reportedly Lays Off Over 1,000 Employees, CZ Says Exchange Is Hiring
Leading crypto exchange Binance has cut hundreds of jobs after a string of executive exits, according to a media report. The news, which comes as the coin trading platform marks its sixth anniversary amid increased pressure from regulators, was termed as FUD by founder Changpeng Zhao who said his company is still hiring.
Major Digital Asset Exchange Binance Cutting Jobs Amid U.S. Regulatory Crackdown, Report
Binance, the world’s biggest crypto exchange, is reducing its workforce after several executives left the company. Media reports about the layoffs come against the backdrop of an ongoing clampdown on the industry and the trading platform in the U.S. where it’s involved in lawsuits with the securities and futures commissions and is under investigation by the Department of Justice.
On Friday, the Wall Street Journal reported that Binance had laid off more than 1,000 employees in recent weeks. A source familiar with the matter later confirmed to Reuters that the crypto behemoth has been cutting jobs. The reports come just days after it became clear that several execs are leaving the digital assets platform with the largest daily trading volume.
Just like when he reacted to the executive exodus, Binance founder and CEO Changpeng Zhao described the news of massive layoffs as FUD (fear, uncertainty and doubt). In a tweet, he stated that the reported numbers “are all way off” and insisted that the company is still hiring.
As we continuously strive to increase talent density, there are involuntary terminations. This happens in every company. The numbers reported by media are all way off. 4 FUD.
On the bright side, they just can’t resist talking about us.
We are still hiring.
— CZ
Binance (@cz_binance) July 14, 2023
At the end of May, CZ refuted rumors suggesting that up to a fifth of the exchange’s workforce might have to leave due to poor market conditions. Last week, he pointed out that his organization has grown from 30 to 8,000 people in just six years.
“As Binance celebrates our sixth anniversary, I want to thank everyone in our community for your extraordinary support. Binance would not be here without you,” CZ said in a video statement on July 14. “We can’t wait for what lies ahead,” the exchange tweeted.
Also on Friday, CNBC reported that Binance intends to lay off between 1,500 and 3,000 people globally through the end of the year, including the 1,000 already let go as per WSJ’s report, in response to an ongoing probe by the U.S. Justice Department over suspected money laundering violations and sanctions evasion.
The report quoted a “current employee familiar with the company’s plans” who asked to remain anonymous but also noted that a representative disputed the higher number. “As we prepare for the next major bull cycle, it has become clear that we need to focus on talent density across the organization to ensure we remain nimble and dynamic. This is not a case of rightsizing, but rather, re-evaluating whether we have the right talent and expertise in critical roles,” the spokesperson said.
Do you expect more layoffs at the world’s largest cryptocurrency exchange? Tell us in the comments section below.