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Crypto forensics firm Chainalysis is set to lay off just under 5% of its workforce of roughly 900 employees.
The firm’s senior director of communications Maddie Kennedy told Decrypt that the layoffs are set to mainly impact those working as part of its “go-to-market team,” usually meant to mean employees working in sales and marketing.
Many of those impacted will be redeployed elsewhere in the company according to Kennedy, in new roles, responsibilities and lines of business.
Despite today’s news, Kennedy affirmed that Chainalysis is “well capitalized” and will continue to hire and build out teams in alignment with its “refocused strategy” for 2023.
The sleuthing firm did not comment further about the nature of this refocused strategy.
Founded in 2014, the firm specializes in tracking crypto transactions and the parties responsible, with the aim of preventing money laundering and cybercrime.
The firm works with various public sector organizations such as the FBI and the U.S. Securities and Exchange Commission (SEC), as well as banks and apps like BNY Mellon and Robinhood.
Chainalysis turning investor heads
The firm has attracted significant inflows of investment in recent years.
Chainalysis raised $170 million in a Series F funding round led by GIC, a Singapore-based sovereign wealth fund, in May 2022.
The funding doubled Chainalysis’ valuation to a hefty $8.6 billion.
We’ve seen the latest round of crypto layoffs continue into 2023, despite Bitcoin itself making a pronounced bull run since the start of the year of over 40%.
In just the past few days, per a filing from the Employment Security Department of Washington State, U.S. crypto exchange Bittrex recently axed around 83 of its roughly 300 employees.