Swyftx crypto exchange lays off 90 staff following FTX crash

Swyftx, an Australian cryptocurrency exchange, has let go of 90 of its staff members following the uncertainty caused by the crash of FTX.

Swyftx co-CEO Alex Harper announced the news in a statement noting that the move was part of the preparation in case of a worst-case scenario in global cryptocurrency trading in 2023. While Swyftx does not have any direct exposure to FTX or FTX customers, Harper noted that the firm and other exchanges could be impacted by the crash and possible fall in the industry in the next year. He stated:

“As we’ve just announced to the team, Swyftx has no direct exposure to FTX, but we are not immune to the fallout it has caused in the crypto markets. As a result, we have to prepare in advance for a worst-case scenario of further significant drops in global trade volumes during H1 next year and the potential for more black swan-type events.”

The 90 members of Swyftx represent a massive 35% of the overall staff, marking a move that is bearish despite the fact that trading volumes picked up in November. Harper noted that his business might be “uniquely well-positioned to weather events like FTX” however precautions must still be taken to avoid facing issues later down the line if the market should take a downturn in the next year. Harper acknowledged that this might be acting out of extreme caution, but continued to say that as “the largest team of any fully owned and operated Australian exchange, with up to five times more team members than most of our main domestic competitors”, it is difficult to take risks when there is uncertainty in the market’s movements.

At the same time as Swyftx’s lay-offs, Australian-based trading platform Digital Surge has halted withdrawals and deposits. The suspension of services seems to follow the FTX implosion, however, the platform has not commented on nor offered any public information.