Anchorage Digital lays off 20% of staff as other crypto-friendly banks shutdown

On March 14, Bloomberg reported that Anchorage Digital, a bank specializing in cryptocurrency, will be reducing its workforce by approximately 20%.

Anchorage lays off 20% of staff

According to Bloomberg, cryptocurrency bank Anchorage Digital is set to lay off 75 employees, constituting 20% of its workforce. Anchorage cited regulatory uncertainties as the reason for the layoffs and plans to concentrate on its role as an “unequivocal qualified custodian.” The bank did not specify any particular regulatory issues. The announcement came soon after three crypto-related banks, Silvergate, Silicon Valley Bank, and Signature Bank, halted operations or were shut down by regulators in early March.

Anchorage Digital operates as a federally chartered bank, and while it had conflicts with the Office of the Comptroller of the Currency (OCC) last year, it did not indicate whether these layoffs would impact its banking operations.

Other firms have performed layoffs

Anchorage's layoffs are the latest in a string of similar measures taken by cryptocurrency firms due to the general “crypto winter.” In January, Coinbase laid off 950 employees, Crypto.com laid off around 800 employees, and Kraken let go of 1,100 employees. Other firms such as Huobi, Gemini, Blockchain.com, Genesis, ConsenSys, Bittrex, Chainalysis, and Amber Group have also recently carried out staff reductions.

In total, it was reported that 23,600 crypto jobs were cut in 2022. The number of job cuts has only increased in the first few months of 2023, with Anchorage being the latest company to do so. It is worth noting that Anchorage's layoffs are unique, as they are the first to be directly related to the crypto banking crisis. However, it is unclear whether the layoffs will affect the company's banking functions.

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