- KuCoin has denied reviews of decreasing its workforce by 30% amid declining income.
- The crypto alternate acknowledged that it was letting go of some staff as a part of a routine adjustment.
- Colin Wu reported that KuCoin had been struggling after being sued by the New York Legal professional Basic in March.
- The crypto alternate’s buying and selling quantity has diminished by over 50% since a strict KYC coverage was enforced final week.
KuCoin has denied reviews of mass layoffs after crypto journalist Colin Wu reported earlier at the moment that the Seychelles-based crypto alternate was planning to let go of 30% of its workforce. The report comes a month after the alternate enforced obligatory know-your-customer (KYC) checks on its buying and selling platform, which reportedly led to a decline in income.
NY AG’s Lawsuit Towards KuCoin Led To Decline In Earnings
Citing three nameless inside sources, Colin Wu reported that KuCoin is ready to put off 300 of its almost 1000 staff. In March, New York Legal professional Basic Letitia James sued the crypto alternate, accusing it of violating securities legal guidelines by providing securities to customers on its platform.
This was adopted by the enforcement of obligatory KYC checks which took impact on July 15. In keeping with Colin Wu, the lawsuit paired with the strict KYC coverage led to a decline in KuCoin’s income. This reportedly prompted the crypto alternate’s plan to put off 30% of its staff.
Nonetheless, the alternate denied the reviews of mass layoffs and said that it meant to make routine changes to its workforce as a part of regular efficiency appraisal. “KuCoin is actively embracing compliance and specializing in core enterprise growth,” the alternate stated in a press release to the crypto journalist.
Knowledge from CoinGecko confirmed that the crypto alternate’s buying and selling quantity has declined by a whopping 73% following the lawsuit by the New York AG. As for this month, the buying and selling quantity declined by 54% for the reason that KYC coverage got here into impact.