Crypto Exchange KuCoin to ‘Adjust Some Personnel as Needed’, but Denies Report of Major Layoffs

Crypto exchange KuCoin said Tuesday it might reduce some its staff as part of a routine adjustment of personnel, but denied that it plans to lay off a large portion of its workforce.

Citing three confirmed but anonymous internal sources, Twitter news account Wu Blockchain tweeted on Tuesday that the Seychelles-based exchange plans to lay off as many as 30% of its employees as it grapples with a decline in profit after the New York State Attorney General Letitia James sued KuCoin in March on allegations that it violated securities laws by offering tokens – including ether. The exchange recently instituted mandatory identity checks on its customers, which Wu Blockchain said cut into profits.

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In a statement to CoinDesk, a spokesperson for KuCoin said that the company has “not initiated any alleged layoff plans.” However, the spokesperson said that “as part of the company’s business development and semi-annual employee performance review, there might be some personnel adjustments as needed, which is a normal process in organizational development.”

KuCoin rival Binance has reportedly been slashing a big chunk of its workforce in recent weeks, although Binance has denied the numbers are as large as has been reported. Like KuCoin, Binance said its workforce adjustments are part of a process of “reevaluating whether we have the right talent and expertise in critical roles,” a spokesperson told CoinDesk earlier this month.