Coinbase CEO Brian Armstrong Blames ‘Unscrupulous Actors’ For Latest Layoffs

Coinbase CEO Brian Armstrong appears to have blamed disgraced FTX founder Sam Bankman-Fried after his company announced another round of massive layoffs on Tuesday.

Armstrong, outspoken critic Bankman-Fried, referred to the recent turmoil in the cryptocurrency industry caused by the collapse of FTX and confirmed that Coinbase has laid off about 950 workers, or roughly 20% of the entire workforce.

“In 2022, the cryptocurrency market has been on a downward trend along with the macro economy as a whole,” Armstrong. says the blog post. “We have also seen the consequences of unscrupulous industry participants, and there may still be further contagion.”

The bankruptcy of FTX last November exacerbated existing problems in the cryptocurrency sector, which had already experienced a significant drop in token prices and company values ​​as risk-averse investors dumped their holdings.

Last month, Bankman-Fried pleaded not guilty to eight federal charges. The feds accused the former billionaire prodigy of illegally using FTX client funds to fund his lavish lifestyle and cover losses at his cryptocurrency hedge fund, Alameda Research.

Job cuts are the latest sign of growing volatility at Coinbase, which previously fired more than 1,100 employees, or about 18% of its workforce, in June. At the time, Armstrong warned that the impending U.S. recession “could lead to another crypto winter” that would hit the sector “for an extended period.”

Armstrong said the latest round of cuts would allow Coinbase to cut its spending by 25% this quarter from the previous quarter.

“I also want to be clear that while some of the factors that have brought us to this point are beyond our control, the responsibility lies with me as CEO,” Armstrong added.

The Coinbase boss also acknowledged that his firm “could have cut even more” when it announced the first round of layoffs last year. Coinbase expects between $149 million and $163 million in costs related to its internal restructuring, which is projected to be “virtually completed” by this summer.

Armstrong has been openly critical of Bankman-Fried since the fall of FTX.

In December, Armstrong accused the media of treating the FTX founder with “baby gloves” despite accusations that he scammed billions of dollars from clients.

When Bankman-Fried went on a media apology tour last year and was interviewed by several major publications, Armstrong called the whole situation “pretty weird.”

“I mean this guy just pulled off a $10 billion scam and why is he being treated with kid gloves?” Armstrong said in an interview technical bulletin.