By
Chimamanda U. Martha
April 25th, 2024
According to the spokesperson, BitMEX is making the changes as it moves to the “next phase” of its business.
Crypto exchange and derivative trading platform BitMEX has laid off 75 employees after the company’s failed acquisition plan. BitMEX currently has about 300 employees, which means that the laid-off staff represents roughly a quarter of the total employees. The crypto platform informed staff of its lay-off decision last week, just days after its acquisition plan could not go on.
A BitMEX spokesperson told The Block that the company is making the changes as it moves to the “next phase” of its business. BitMEX added that its top priority is to ensure that all its laid-off employees have the required support. Speaking further, the spokesperson explained:
“Each of them has been instrumental in the remarkable journey BitMEX has taken from its roots as a small startup to one of the top crypto exchanges in the world. The BitMEX platform will continue to operate as normal, and we will not be commenting further at this time.”
BitMEX Lays Off Employees After Failed Acquisition Plan
BitMEX executives CEO Alexander Hoptner and CFO Stephen Lutz were going to purchase Bankhaus von der Heydt. The executives intended to acquire the German bank through the BXM operation. However, BitMEX confirmed last week that it would not be going on with the purchase. A BitMEX spokesperson revealed that both BXM Operations AG and the owners of the 268-year-old German private bank.
“After further discussions between BXM Operations AG and the owner of Bankhau von der Heydt, the two parties have mutually and amicably decided to discontinue the proposed acquisition. We look forward to sharing details of our future plans in due course.”
Additionally, BitMEX co-founders Arthur Hayes, Ben Delo, and Samuel Reed were also in the news over some violation matters. The trio pled guilty to violating the US Bank Secrecy Act. In October 2020, the co-founders were accused of the alleged illegal operation of a crypto derivatives platform and violating anti-money laundering regulations in the US. After some back and forth, the court has now ordered each of them to pay $10 million in criminal fees.
Although Hayes stopped being BitMEX’s CEO in October 2020, sources stated that he played a significant role in staff lay-off. Also, the source added that Hayes is helping BitMEX in scaling back. The source specified that the former CEO is actively involved in the company’s recent decision.
Notably, all BitMEX co-founders unanimously agreed regarding the recent changes. According to the source, the company’s management structure remains the same, with Alexander Hoptner as the incumbent CEO.