Why Has Seychelles-based Exchange BitMEX Fired A Quarter Of Its Workforce?

• Seychelles-based exchange BitMEX has laid off 75 employees, 25% of its workforce. 

• A spokesperson for BitMEX said that the company would be functioning normally despite the mass layoff.

• The three co-founders of BitMEX are found guilty of violating anti-money laundering laws. 

BitMEX has fired 75 workers, which makes 25% of its workforce. Still, the company says it wouldn’t affect its normal functioning. 

BitMEX’s Mass Layoff 

Last week, the Seychelles-based exchange, BitMEX, informed its 75 employees that they would have to leave by the end of April. These employees represent one-quarter of the total workforce of the exchange. 

BitMEX is a derivatives trading platform and cryptocurrency exchange. HDR Global Trading Limited, registered in Seychelles, owns and operates BitMEX. 

A spokesperson from BitMEX shared:

In order to prepare for the next phase of its business, BitMEX is making changes to its workforce. The spokesperson also revealed that all the employees impacted will be provided the necessary support. 

The spokesperson also said that the exchange would continue to function normally, despite the firings.

Alexander Höptner, chief executive officer of the company, will still be holding his position. In October 2020, Hoptner attained the position in October 2020, when Arthur Hayes, one of BitMEX’s co-founders, stepped down because of the charges levied against him and the other two co-founders, Samuel Reed and Benjamin Dalo, for breaking the anti-money laundering (AML) laws. 

Recently, Arthur Hayes said that he believes that ether (ETH), the token powering Ethereum’s blockchain, will have a five-digit price by the end of the year. 

Last August, in a settlement with the Department of Treasury’s Financial Crimes Enforcement Network and the Commodity Futures Trading Commission, these charges cost the crypto derivatives platform $100 million. All the three co-founders are found guilty of violating the Bank Secrecy Act and purposely failing to form adequate AML procedures by March of this year. The three co-founders are potential fines worth millions and prison time. 

Since the very beginning, BitMEX has always offered Bitcoin derivatives, but now the exchange will have new offerings such as Ethereum derivatives along with brokerage, custody offerings, and spot trading.  

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

Latest posts by Nancy J. Allen (see all)