Wednesday, September 28, 2022

BitMEX Retrenchment Hits Hard on About 75 Employees

Seychelles-based crypto exchange company, Bitcoin Mercantile Exchange (BitMEX) announced last week that there would be a global reduction of its staff members from 300 to 225 as 25% of its employees will be laid off. According to a report, the workers concerned are already aware of this latest development. 

Just after the court hearing of BitMEX CEOs, Arthur Hayes and Benjamin Delo where they pleaded guilty to violating the Bank Secrecy Act, BitMEX through one of its arms, BXM Operations, went into talks to acquire a long-standing German bank, Bankhaus von der Heydt. 

The deal to obtain the 268 years old financial institution had been subject to approval by the German financial watchdog, BaFin. For a derivative inclined firm like BitMex, gaining ownership of the German bank meant going beyond the former services it offers to a more sophisticated product and service listing.

The exchange saw Bankhaus von der Heydt as an opportunity to delve into the sales and purchase of foreign currencies for spot delivery, investment brokerage, the media industry, and even the education sector.

After a series of discussions between the owner of Bankhaus von der Heydt and an associate of BitMEX, BXM Operations, both parties decided to call off the contract in unison, although BitMEX had expected that the deal was going to spur its goal to rank among the top ten crypto exchange. 

No explanation was offered as to the reason behind the cancellation. There have been speculations that the staff cut might be a result of the failed acquisition deal, and there are also speculations that co-founder Arthur Hayes might have a hand in this scaling back move.

New Era For BitMEX

While speaking of the retrenchment, a spokesperson for BitMEX said he is of the opinion that this move by the trading platform is to adjust the workforce to accommodate new changes that the coming phase of operations will generate.

He also attested that all affected employees will be provided with the needed assistance that the downsizing might have caused. As a result of these job cuts, BitMex will be operating with only 225 employees globally starting in May.

The firm has assured the public that none of its services will be deterred by this action; instead, all of its operations will continue normally. 

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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