FalconX, a major digital asset prime broker, has laid off roughly 35 employees, about 10% of its roughly 350-person workforce spread across the US, UK, Singapore and Hong Kong. Bloomberg reported the cuts first, though the company had not publicly confirmed them at the time. The move signals that even well-capitalized trading firms are feeling the squeeze as the crypto downturn stretches longer than many anticipated.
Bitcoin has tumbled about 50% from its October peak near $126,000, now trading below $64,000. That collapse is crushing trading volumes across the sector, forcing firms to recalibrate. FalconX built its name as a digital asset prime brokerage and expanded aggressively last year, acquiring crypto ETF issuer 21Shares in November. The layoffs feel less like panic and more like a strategic reset, trimming excess fat before a potentially longer slump.
Redrawn map, new focus
The company isn't just shrinking. FalconX is reshaping where and how it operates. It plans to withdraw its license application with Singapore's Monetary Authority and pivot toward crypto derivatives trading instead. Europe is becoming the growth zone. The shift suggests the firm sees opportunities in derivatives and European expansion, even if Asia operations need to tighten.
These moves raise a harder question: how much longer can trading desks stay quiet before the structure of the industry itself starts to crack. FalconX has the balance sheet to weather this. Most don't.
This material is for informational purposes only and should not be construed as financial advice or a recommendation to trade or invest in any particular asset.
