FalconX laid off roughly 10 percent of its global workforce this week as the digital asset prime brokerage braces for a prolonged cryptocurrency downturn.
The company employed about 350 people across the United States, United Kingdom, Singapore and Hong Kong before the cuts. Approximately 35 employees were affected.
FalconX will withdraw its license application with the Monetary Authority of Singapore and refocus its Singapore operations on crypto derivatives trading. The firm intends to maintain its Asia presence while expanding in Europe.
The strategic shift follows FalconX's acquisition of crypto ETF issuer 21Shares last November, a deal that expanded its digital asset product lineup.
Bitcoin trades at $63,734, up 0.4 percent over 24 hours, but remains roughly 50 percent below its October peak above $126,000. Ethereum trades at $1,867, down 0.8 percent. Compressed trading volumes and weak retail participation continue to pressure revenue across the sector.
FalconX is not alone. Coinbase, Crypto.com, Luno, Gemini and BitGo have all reduced headcount. The Ethereum Foundation cut 20 percent of its staff during a recent restructuring. Workforce reductions across major crypto firms continued through the first half of 2026.
The industry is rotating away from spot trading. The crypto TradFi sector—covering tokenized assets and derivatives—grew fivefold to $6.6 billion between January 2025 and June 2026, with tokenized stocks and commodities leading that growth. Coinbase's most recent earnings showed 88 percent of second-quarter net revenue came from businesses other than spot Bitcoin trading, with derivatives and prediction markets driving an increasing share.
