Jin'an, one of the world's largest Cryptocurrency exchange, celebrated its sixth anniversary. However, this supposed festive moment was shrouded in a haze
Jin'an, one of the world's largest Cryptocurrency exchange, celebrated its sixth anniversary. However, this supposed festive moment was shrouded in a haze. Coin An is facing a storm of investigations by the US Department of Justice, executive resignations, and large-scale layoffs, which has had a huge impact on the market.
According to reliable information, Coin An is facing an investigation by the US Department of Justice, and the specific content of the investigation has not yet been made public. However, this news has attracted widespread attention in the market. It is understood that the investigation into Coin An by the Ministry of Justice may end with a consent order or a multi billion dollar settlement, which may cause significant financial and reputational losses to Coin An.
After the investigation was exposed, Coin An welcomed a series of executive resignations. The resignation of executives not only caused internal turmoil within the company, but also raised more doubts about the stability of Coin An in the market. This series of changes further weakened the reputation and brand image of Coin An, triggering widespread anxiety and panic.
Faced with the dual blow of investigation and executive resignation, Coin An had to start implementing a large-scale layoff plan. According to insiders, this layoff will eventually reduce 1500 to 3000 employees worldwide, which is a shocking number and has a huge impact on the employees of Yenan and the entire Cryptocurrency industry. Before the layoffs, there were a total of 8000 employees in Coin An.
The implementation of the layoff plan has further exacerbated market anxiety. Many employees have lost their jobs and are facing severe livelihood problems. The layoff plan has caused significant damage to the reputation and brand image of Coin An, and the market has raised greater doubts about its future development and sustainability.
Changpeng Zhao, CEO of Yuan'an, confirmed that his exchange was laying off staff, but said the figures reported by the media were "greatly deviated". Changpeng Zhao wrote in a tweet at the weekend: "As we constantly strive to improve the talent density, there will be involuntary dismissal." At the same time, he added: "Every company will have this situation."
Previously, a report in the Wall Street Journal stated that the exchange was laying off "over 1000 employees" and could ultimately lay off one-third of its employees.
In his tweet, Changpeng Zhao said that the number of layoffs reported by the media was "greatly deviated", and called such reports "FUD", that is, "fear, uncertainty and doubt". He added, "We are still recruiting
CinneamhainVentures partner Adam Cochran, citing media Protos files, tweeted that Coin An stated in a notice sent to internal employees that,
Due to the current market and regulatory environment leading to a decrease in profits, we have had to cut expenses. Therefore, the following benefits will immediately cease on June 19th: Covid care subsidy, mobile phone subsidy, fitness subsidy, WFH (one off) expense subsidy, newlywed allowance, 8-year-old child subsidy, other employee related benefits (coupons, book reimbursement, etc.), and team building budget adjustment to $35 per month.
Adam Cochran stated that the average salary of laid off employees is lower than that of the United States, with some even as low as $50000 per year. He stated that while Coin On has stated to the public that it is still recruiting, it has informed the internal team to stop recruiting and expects more layoffs in the next 3 to 6 months.
For the 1000 employees who were laid off, Qian An did not notify them or their managers, but was immediately laid off. Some people were told to sign NDA Non-disclosure agreement for a small amount of remuneration. The others have nothing. Currently, Adam Cochran has confirmed that the minimum salary for laid-off employees is $10500 per year, paid in BNB, which is the salary for Latin American customer support employees.
Adam Cochran stated that the Protos team helped to put the files and sources in place so that they could be published in a manner that complies with Canadian and US news source protection laws, and they would also receive more coverage.
Behind the sixth anniversary celebration, market participants are full of concerns about the future of Coin An. Faced with the storm of investigations, executive resignations, and large-scale layoffs, Coin An will face difficult challenges.
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