London-based Cryptocurrency Exchange Luno Lays Off 35% of Global Workforce

Luno, a London-based cryptocurrency exchange, has announced that it will be laying off 35% of its global workforce, CNBC reports. The company is part of the Digital Currency Group crypto conglomerate and has offices in Africa, South East Asia, and Europe.

Employees were informed of the layoffs in a live-streamed town hall on Wednesday at 12:00 p.m. GMT. According to Luno's LinkedIn profile, the company has a total headcount of around 960 people, which means that the decision will affect more than 330 jobs.

Luno Job Cuts

In a statement shared with CNBC, the company said, "2022 has been an incredibly tough year for the broader tech industry and, in particular, the crypto market. Luno, unfortunately, hasn't been immune to this turbulence, which has affected our overall growth and revenue numbers."

The Luno job cuts are just the most recent in a string of job losses in cryptocurrency. The aftermath of the FTX meltdown, once one of the biggest cryptocurrency exchanges in the world, has affected several cryptocurrency businesses, including Digital Currency Group. Last week, DCG's lending division, Genesis, also declared bankruptcy.

Bankrupt Genesis Global Capital

According to Aljazeera, the legal team of bankrupt Genesis Global Capital believes it can resolve its disputes with creditors this week and emerge from Chapter 11 bankruptcy protection by late May.

The lawyer, Sean O'Neal, testified at an initial hearing in Manhattan bankruptcy court for Genesis Global Capital, the crypto lending company owned by Barry Silbert's venture capital firm Digital Currency Group.

On Jan. 19, Genesis and two lending units filed for bankruptcy protection from creditors, two months after it froze customer withdrawals following the collapse of Sam Bankman-Fried's FTX exchange.

A Tough Year for the Crypto Market

This year, the cryptocurrency market has been confronted with several significant challenges, the most notable of which is Bitcoin's price decline from its all-time high of $61,000 in October 2021 to approximately $2,000 this January. The value of other cryptocurrencies has also dropped sharply recently.

Regulatory challenges have also hit the market, with several countries cracking down on crypto-related activities. The Securities and Exchange Commission (SEC) of the United States has been particularly active in this regard, issuing investor warnings and cracking down on fraudulent activities in the cryptocurrency market.

More About Luno

The company, founded in 2013 and headquartered in London, currently operates in 40 countries across Europe, Southeast Asia, and Africa.

Luno's platform allows customers to buy, sell, and store a variety of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.

The company is known for its user-friendly interface and robust security measures, making it a popular choice among experienced traders and those new to cryptocurrency.

Timothy Stranex, Luno's co-founder and chief technology officer, left the company in December last year, nearly ten years after co-founding it with Carel van Wyk, Pieter Heyns, and current CEO Marcus Swanepoel.

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