Coinflex Cuts Workforce by Over 50%

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  • Coinflex has cut its workforce by over 50%
  • The exchange blamed the crypto winter and its battle with Roger Ver over $84 million
  • Coinflex is still looking for a partner

Coinflex, the exchange that recently launched legal proceedings against Roger Ver in an attempt to claw back $84 million it says he owes the platform, has cut its workforce by over 50%. The exchange revealed the news in an update on Friday, saying that it wanted to give itself “every chance to be a successful business”, conscious of its efforts to make its rvUSD recovery plan work to the benefit of its customers and the $84 million gap now on its balance sheet.

Coinflex Engaged in Legal Battle to Recover $84 Million

Coinflex has been working on its recovery plan since July when the identity of the person who was causing the gulf in its accounts, as well as the full extent of that gulf, was unknown. Initially the debt incurred by Ver was pegged at $47 million, but this didn’t include FLEX coins debts, which almost doubled it to $84 million.

Coinflex took legal action in early July, further adding to its costs, and on Friday it revealed that this, combined with the downturn in traffic due to the onset of the crypto bear market, has led to it having to massively save on costs.

Coinflex Still Seeking Partnership

Coinflex said in the update that it wanted to “be in a position, cost-wise, to make sure that we have every chance to be a successful business which begins by being a leaner business staffing-wise”, which has led it to follow the lead set by others in the space:

This means that we, unfortunately, had to let go of a significant number of the CoinFLEX team across all departments and geographies. The staff cuts and non-staff costs that we have made will reduce our cost base by approximately 50-60%. The majority of the team that remain are focused on product and technology, which remains the core of our business.

Even without the Ver-sized hole in its accounts, the crypto winter would have had an effect on Coinflex, which said in the update that it sees a potential partnership as its primary way of affecting a full recovery.