The CEO of blockchain software company Consensys says the company is laying off 20% of its employees as the crypto industry faces a more cautious macroeconomic environment and regulatory uncertainty.
In a statement, Joe Lubin said that in addition to rising interest rates, inflationary pressures and tightening liquidity, the lack of a clear regulatory framework has also made the crypto space unnecessarily complex for innovators, builders, investors and businesses.
He says the US Securities and Exchange Commission (SEC) is causing significant losses to digital asset companies and their employees.
“Multiple cases at the SEC, including ours, represent meaningful jobs and productive investments lost as a result of the SEC’s abuse of power and Congress’ failure to fix the problem. Such attacks by the U.S. government will ultimately cost many companies that have been investigated, charged, or served Wells Notices many millions of dollars.”
Lubin says Consensys is streamlining its operations to stay competitive in the rapidly evolving market. Affected employees will receive generous severance pay, an extended stock option exercise period, outplacement services and continued healthcare benefits in relevant jurisdictions.
“To ensure our long-term sustainability and better align our efforts with our strategy, we have made the difficult decision to right-size the company and navigate this landscape with resilience and adaptability.”
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