Crypto firm Blockchain.com lays off 25% of staff as 3AC spreads

Crypto startup Blockchain.com says it is cutting 25% of its staff, citing tough market conditions.

The cuts mean around 150 roles at the company.

The company is also closing its Argentina office and abandoning plans to expand into multiple countries.

Most of the layoffs – about 44% – affect employees in Argentina, while 26% are based in the US and 16% in the UK. The company informed staff of its plans on Thursday.

Industry website CoinDesk was be the first to report the news, which was later confirmed to CNBC by a Blockchain.com spokesperson.

Blockchain.com is one of the many companies that were caught up in the collapse of crypto hedge fund Three Arrows Capital.

3AC filed for bankruptcy protection earlier this month because it owed hundreds of millions of dollars to crypto firms including Celsius and Voyager Digital. The company’s co-founders have since gone dark. Lawyers representing the creditors are trying to trace their whereabouts.

Blockchain.com itself has lent 3AC $270 million in crypto and expects to lose that amount.

On Wednesday, crypto exchange Coinbase denied having any financial exposure to Celsius, Voyager or 3AC.

The collapse of the controversial Terra stablecoin in May had a spiraling effect, causing the collapse of crypto companies that were making risky bets using borrowed funds.

Firms such as Celsius and Voyager froze user accounts after failing to meet redemption requests before subsequently going bankrupt.

Founded in 2012, Blockchain.com is a crypto exchange and wallet platform. The firm, which ranked No. 7 on this year’s CNBC Disruptor 50 list, claims to be responsible for nearly a third of all bitcoin transactions through its wallet product.

The privately held company was valued at $14 billion in a funding round announced earlier this year. His backers include Bailey Gifford, American hedge fund manager Kyle Bass and British tycoon Richard Branson.