Kraken Crypto Exchange Announces Staff Reductions Amidst Arrival of New Co-CEO – BNN Bloomberg

(Bloomberg) — In the wake of new co-chief executive appointments, Kraken, a cryptocurrency exchange headquartered in the US, is reducing its workforce. A representative of the company confirmed these organizational restructuring efforts.

The number of employees impacted and the specific positions eliminated have not been disclosed by the company’s spokesperson. This follows the entrance of Arjun Sethi, co-founder of the venture company Tribe Capital, who now shares the co-CEO role with Dave Ripley at Kraken.

Through a recent blog update on Wednesday, Kraken announced it’s compressing its corporate structure to trim excess hierarchical levels that have built up during its expansion period when its net income rose above $1 billion. Launched in 2011 and based out of San Francisco, Kraken has diversified into new products and territories whilst contemplating the possibility of an Initial Public Offering. Bloomberg previously mentioned the exchange was assessing a last investment round before a public outing.

The company acknowledged the tough nature of restructuring initiatives in its blog, emphasizing the significant effect these changes have on individuals.

These reductions in Kraken’s staff mirror a broader trend of job cuts across the cryptocurrency sector. Just a day prior, Consensys, a key software developer for the Ethereum network currently facing an SEC lawsuit, cited regulatory uncertainties while cutting down its workforce by 20%, equal to 162 positions. In a separate incident, decentralized finance platform DYdX Trading Inc. also disclosed a workforce reduction of 35%.

Kraken’s fortunes, like others in the crypto space, might pivot on shifts in US regulatory frameworks affecting digital assets after the forthcoming elections. The exchange was previously in the crosshairs of the SEC for allegedly running unregistered trades. By February 2023, Kraken had resolved other charges with the SEC related to its staking services.

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