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Crypto derivatives exchange BitMEX fired 75 employees, which is equivalent to a mass layoff of 25% of the staff. The company explains its action by optimizing before the next stage of the business.
In reality, layoffs are punitive, a decision taken by company founder Arthur Hayes.
He continues to influence the business, despite being forced to retire after litigation in the United States. The claims of the American authorities ended in multimillion-dollar fines and the loss of the first place by the BitMEX exchange in trading BTC futures.
The company was found guilty of regulatory arbitrage, violating the ban on serving US citizens, violating the bank secrecy law and AML regulations. Arthur Hayes planned to improve his reputation and restore the respectability of the business by taking over Bankhaus von der Heydt (BVDH).
BVDH, dating back to the 18th century, gave BitMEX access to the European Union and the opportunity to trade cryptocurrency in Germany, the most loyal country to digital assets. A lot of money and effort was spent on the deal, but the BaFin regulator decided not to contact a company with a similar reputation.
A number of insiders talk about revenge on the part of the US authorities, who influenced the decision of the German regulator at the last moment. Probably, Hayes’s confidence in the completion of the transaction angered the founder so much that he immediately laid off a quarter of the staff.
#Mass #cuts #BitMEX