Indian cryptocurrency exchange WazirX reportedly laid off 40% of its workforce, citing a global economic slowdown.
According to a report, 50 to 70 employees of the 150 workers at the exchange were asked to leave the company.
The employees were told they no longer needed to report for work on Friday. They were offered 45 days’ pay as compensation.
“The crypto market has been in the grip of a bear market because of the current global economic slowdown,” CoinDesk quoted WazirX saying.
“The Indian crypto industry has had unique problems concerning taxes, regulations, and banking access. This has led to a dramatic fall in volumes in all Indian crypto exchanges,” it added.
CoinDesk quoted a source saying that the workforce was cut from several departments, including customer support, HR, and other departments. Managers, Analysts, and Associate Managers/Team leaders were among those laid off.
Earlier in August, The Enforcement Directorate (ED) froze assets worth $8.1 million of WazirX as part of an investigation into instant personal loan fraud.
The ED alleges that WazirX helped various firms in laundering proceeds of crime by transferring the money to unknown foreign wallets.