FalconX has laid off roughly 35 people, about 10% of its 350-strong workforce across the US, UK, Singapore and Hong Kong. The prime brokerage cited the prolonged crypto market slump as the reason. The cuts signal that even well-funded players in digital assets are feeling the squeeze as trading volumes shrink and institutional appetite cools.
The Singapore operation takes the biggest hit. FalconX is pulling its application for a Singapore license and realigning its regional strategy toward derivatives trading instead. The move suggests the company is tightening its footprint and focusing capital on segments where it sees actual demand. Institutional derivatives have become a battleground, with rivals reshaping their own platforms to compete.
FalconX joins a growing list of crypto firms trimming headcount. Coinbase has already made similar cuts as the broader sector contends with a multi-year bear market. Prime brokerages, which cater to hedge funds and traders, are especially vulnerable because their revenue depends directly on trading activity and volatility. When markets flatline, so does their business.
The timing matters. While some crypto assets have recovered from their lows, institutional capital remains cautious. Spot trading hasn't roared back, and use is still constrained. That leaves derivatives as one of the few growth vectors, which explains why FalconX is doubling down there. Survival in this downturn means doing more with less, and that usually starts with payroll.
This article is for informational purposes only and should not be taken as investment or financial advice.
