Crypto Sector Sheds More Jobs as Chainalysis Cuts 15% of Staff

Olga Kharif, Bloomberg News

Wiring for an array of bitcoin mining units inside a container at a Cleanspark facility in College Park, Georgia, U.S., on Friday, April 22, 2022. Georgia is attracting Bitcoin miners with its relatively low power prices and large amount of nuclear and solar power, which allows mining companies to brand themselves as sustainable or emissions-free. Photographer: Elijah Nouvelage/Bloomberg , Bloomberg

(Bloomberg) -- Blockchain data company Chainalysis Inc. implemented another round of layoffs, the latest job cuts to hit the crypto sector.

The firm made “the difficult decision to part ways with 15%” of employees, a spokesperson said late Monday in the US, adding “we are very focused on growing efficiently and, due to market conditions, believe it necessary to reduce our expenses at this time.”

The company — which specializes in tracking digital-asset transactions and the entities behind them — had about 900 staff after layoffs earlier in 2023 that it said affected less than 5% of workers.

The crypto sector suffered a spate of job losses after last year’s rout in token prices. Thousands of positions have been lost in 2023 alone.

Chainalysis was founded in 2014 and gained prominence for collaborating with the US and other governments on crypto-related probes. The company’s backers include Singapore’s sovereign wealth fund GIC.

Chainalysis “continues to be well positioned for long-term success” and remains committed “to our mission to build trust in blockchains among government agencies, financial institutions, and cryptocurrency businesses,” the spokesperson said.

--With assistance from Suvashree Ghosh.