FalconX has reportedly cut about 10% of its global workforce as the digital asset prime broker prepares for an extended cryptocurrency market downturn.
Summary
- FalconX reduced its global workforce by roughly 10%, affecting an estimated 35 positions.
- The company plans to withdraw its Singapore license application and prioritize crypto derivatives.
- FalconX will maintain its Asian presence while directing more resources toward European expansion.
- The layoffs follow recent workforce cuts at Luno, Pump.fun and other crypto companies.
FalconX layoffs affect about 10% of staff
FalconX implemented the workforce reduction across its global operations, Bloomberg reported Monday, citing people familiar with the matter. The company employed approximately 350 people before the layoffs, suggesting that around 35 positions may have been affected.
Its workforce was spread across the United States, the United Kingdom, Singapore and Hong Kong. FalconX has not publicly disclosed which teams, offices or roles were included in the cuts.
The company has not disclosed the expected cost savings, severance expenses or a timeline for completing the restructuring.
FalconX operates as a prime broker for institutional digital asset investors, offering trading, financing and risk management services. Unlike a retail exchange, its core customers include hedge funds, asset managers and other professional trading firms.
FalconX shifts its Singapore strategy
FalconX is also changing its strategy in Singapore, where it plans to concentrate on crypto derivatives trading and withdraw its license application with the Monetary Authority of Singapore.
The withdrawal does not mark a complete exit from Asia. FalconX reportedly plans to retain a presence in the region while expanding its European operations.
FalconX entered Singapore in 2023 and launched an over-the-counter derivatives business aimed at institutional customers across the Asia-Pacific region. At the time, the company said it intended to seek the licenses needed to offer a broader set of prime-brokerage services.
The new approach narrows that plan as FalconX directs resources toward business lines it considers better positioned during the downturn. The company has not provided details about how the change will affect existing Singapore employees or customers.
Bitcoin downturn pressures crypto companies
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.
FalconX strengthened its institutional and asset-management operations in November 2025 by completing its acquisition of 21shares. The transaction combined FalconX’s prime-brokerage infrastructure with the crypto exchange-traded product issuer’s global business.
21shares currently manages more than $12 billion across over 50 crypto exchange-traded products, including US-listed funds. FalconX has not indicated that the reported layoffs will affect those products or their investors.
Crypto layoffs spread across the industry
The FalconX reduction is the latest in a series of layoffs that have swept through the cryptocurrency industry during the market slowdown.
As reported by crypto.news on July 31, Luno cut about 20% of its global workforce while redirecting resources toward institutional customers and its business-to-business unit. Chief Executive James Lanigan said automation and operational changes had reduced the resources required to run the exchange.
Pump.fun also reportedly dismissed employees shortly before their PUMP token allocations were scheduled to vest. At least one former worker allegedly lost an allocation that later reached a seven-figure value. Former employees also claimed that Baton Corp., the company behind Pump.fun, conducted another round of layoffs in July.
Coinbase, Crypto.com, Gemini and BitGo have also reduced staff during the broader downturn. The growing number of cuts suggests that companies are preparing for weak market conditions to continue, even as many redirect spending toward automation, derivatives and institutional services.
FalconX’s next steps will center on implementing its narrower Singapore strategy while developing its European business. Further details will depend on whether the company formally confirms the layoffs and explains how the restructuring affects its regional operations.
