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Swyftx eliminates 40% of workers in ‘worst-case scenario’

Australian crypto exchange:

Even though the Australian crypto exchange had nothing to do with FTX, it said it was “not immune” to its effects.

Swyftx, a cryptocurrency exchange based in Australia, has let go of 90 employees. The company says it did this to prepare for a “worst-case scenario” caused by the fallout from FTX and a possible drop in global trading volumes next year.

Alex Harper, co-CEO of Swyftx, announced the news in a December 5 statement. He said that even though the company had no ties to FTX, it was “not immune” to the effects of the exchange going out of business.

“Because of this, we have to plan for a worst-case scenario in which global trade volumes drop even more during the first half of next year and more “black swan” events happen.”
A spokesperson for Swyftx told that the 40% cut in staff was also meant to prepare for a drop in trading volumes, even though these numbers went up in November.

“We’ve let people go because we expect global trade volumes to drop sharply in the first half of 2023 and more fallout from FTX’s collapse,” the spokesperson said.

Global impact of FTX:

Harper said in his statement that he had to make the hard choice to get through the long crypto winter.

“Our business is in a perfect place to handle things like FTX.” But as much as we’d like to be separate from the market, we can’t. That’s why we’re acting quickly and reducing the size of our team by a significant amount.
The Swyftx representative said again that the company’s balance sheet was still in good shape, even though it was indirectly affected by the FTX collapse.

“I should make it clear that we have no risk with FTX. We keep our customers’ money and don’t lend it to other people.”
Harper also said that his company’s business decisions would become less risky and that cutting staff would lower operational costs.

Swyftx continues to make a lot of money, but we’re not willing to take any risks after FTX, so we’re being cautious with costs next year,” the spokesperson said, adding security, compliance, and customer support services wouldn’t be affected.

A spokesperson for Swyftx told that the staff cuts affected chiefly the company’s research and development team.

The latest layoffs come after 74 employees, or 21% of the company’s staff, were let go in August 2022.

Harper said in August that the company “grew too fast” when the market peaked in 2021 but that “we are simply much bigger than we need to be to run and grow.”

Digital Surge stops withdrawals.
Another company in Australia, Digital Surge, which is also based in Australia and stopped withdrawals on November 16, has also been affected by the FTX contagion.

Final Take:

The cryptocurrency exchange confirmed on November 16 that it had stopped accepting deposits and withdrawals and told customers that it would give more information in two weeks.

But as of the time, this was written, the company hadn’t said anything else in public.

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