According to reports from Bloomberg, FalconX has implemented a 10% workforce reduction across its global operations, affecting approximately 35 positions. The company employed around 350 people before the layoffs, with its workforce distributed across the United States, United Kingdom, Singapore and Hong Kong. The cuts reportedly affected nearly half of FalconX's Singapore office, including employees in sales, accounting, and management positions. FalconX has not publicly disclosed which teams, offices or roles were included in the cuts, nor provided details about expected cost savings, severance expenses or a timeline for completing the restructuring. The layoffs are part of a strategic adjustment to align costs with current market conditions, a common practice among financial technology firms during downturns.
As reported by Bloomberg, FalconX is withdrawing its Singapore license application with the Monetary Authority of Singapore and prioritizing crypto derivatives trading. The company entered Singapore in 2023 and launched an over-the-counter derivatives business aimed at institutional customers across the Asia-Pacific region. However, the withdrawal does not mark a complete exit from Asia, as FalconX plans to retain a regional presence while directing more resources toward European expansion. The company has not provided details about how the change will affect existing Singapore employees or customers. CEO Raghu Yarlagadda announced on July 15 that the company was reallocating capital, technology, and talent as institutional demand increasingly shifted beyond cryptocurrencies toward tokenized financial assets. The restructuring is part of FalconX's efforts to prepare for a potentially prolonged downturn in crypto markets.
According to Bloomberg, the cuts come as falling cryptocurrency prices weigh on trading volumes and industry revenue. Bitcoin was trading near $63,500 on Tuesday after reaching an intraday low around $62,200, leaving it nearly 50% below its October 2025 peak above $126,000. The decline has reduced retail activity and pushed crypto companies to control costs or expand into businesses less dependent on spot-market trading. Derivatives, institutional services and tokenized financial products have become increasingly important as firms seek more stable revenue sources. Prime brokerages, which facilitate large trades, lending, and custody for institutional investors, have faced shrinking trading volumes and margin pressures, with competitors such as Genesis Global and Coinbase Institutional also experiencing similar headwinds.
As reported by crypto.news on July 31, the FalconX reduction is part of a broader series of layoffs across the cryptocurrency industry during the market slowdown. Luno cut about 20% of its global workforce while redirecting resources toward institutional customers and its business-to-business unit. Pump.fun also dismissed employees shortly before their PUMP token allocations were scheduled to vest, with at least one former worker allegedly losing an allocation that later reached a seven-figure value. DCG-owned crypto exchange Luno announced it would cut approximately 20% of its workforce last week, while shifting resources toward institutional services, compliance infrastructure, and local-currency stablecoin initiatives. Coinbase, Crypto.com, Gemini and BitGo have also reduced staff during the broader downturn, suggesting companies are preparing for weak market conditions to continue. The move may also affect client confidence, as staffing levels often correlate with service quality in prime brokerage.
According to Bloomberg, FalconX operates as a prime broker for institutional digital asset investors, offering trading, financing and risk management services to hedge funds, asset managers and other professional trading firms. The company was valued at $8 billion in a 2022 funding round and has not indicated that the reported layoffs will affect those products or their investors. The company has expanded through acquisitions over the past 18 months, including Arbelos Markets, 21Shares and bloXroute, strengthening its institutional and asset-management operations. The layoffs underscore the importance of operational efficiency in a volatile industry, with the company remaining a significant player while focusing on strategic adjustments to navigate current market challenges and maintain stability among institutional clients.
