FalconX Cuts 10% of Staff, Withdraws Singapore License Bid to Focus on Derivatives

FalconX has trimmed roughly 10% of its global headcount as the institutional crypto prime broker braces for an extended market downturn. What happened - Bloomberg reported the cuts Monday, citing people familiar with the matter. FalconX had about 350 employees before the reductions, implying roughly 35 roles were eliminated. - The layoffs affected staff across the U.S., U.K., Singapore and Hong Kong, though FalconX has not said which teams, offices or roles were impacted, nor disclosed expected cost savings, severance costs or a timeline for the restructuring. Why now Executives told Bloomberg the moves are aimed at positioning the firm for a prolonged period of soft trading conditions. Falling crypto prices have reduced retail activity and trading volumes industry-wide, prompting firms to slough cost and reallocate resources toward more stable revenue streams such as derivatives, institutional services and tokenized products. A strategic pivot in Singapore FalconX is also reworking its Singapore approach: the company plans to focus on crypto derivatives trading and has withdrawn its license application with the Monetary Authority of Singapore (MAS). That withdrawal does not mean a full exit from Asia—FalconX intends to keep a regional presence while shifting more resources toward growing its European business. Background: Singapore and product strategy - FalconX entered Singapore in 2023, launching an over-the-counter derivatives business targeting institutional clients across the Asia-Pacific region. The original plan included seeking additional licenses to expand prime-brokerage offerings, but the new strategy narrows that ambition to areas the firm believes will weather the downturn better. - FalconX has not detailed how the change will affect existing Singapore employees or customers. Company context and recent milestones FalconX serves hedge funds, asset managers and other professional trading firms with trading, financing and risk-management solutions—distinct from retail exchanges. In November 2025 it closed its acquisition of 21Shares, combining FalconX’s prime-brokerage infrastructure with the exchange-traded product issuer’s global business. 21Shares currently manages more than $12 billion across over 50 crypto ETPs, including U.S.-listed funds; FalconX has not indicated the layoffs will affect those products or their investors. Market backdrop Bitcoin was trading near $63,500 on Tuesday after an intraday low around $62,200, almost 50% below its October 2025 peak above $126,000. That slump has accelerated cost cutting and strategic refocusing across the industry. Industry-wide retrenchment FalconX’s cut follows a wave of workforce reductions throughout crypto: Luno recently cut about 20% of global staff while shifting focus to institutional and B2B services; Pump.fun reportedly dismissed employees ahead of token vesting events; and major platforms including Coinbase, Crypto.com, Gemini and BitGo have also trimmed teams as firms prepare for sustained weak market conditions. What to watch The market will be watching for official confirmation from FalconX, details on which business lines and offices were affected, any severance or cost-savings figures, and how the narrower Singapore strategy is executed alongside the company’s European expansion plans.