FalconX, one of the largest institutional digital asset prime brokers in the world, has laid off roughly 10% of its global workforce. The cuts hit Singapore especially hard, where half the office was let go.
What happened at FalconX
With over 350 employees globally before the cuts, that translates to roughly 35 positions eliminated across operations.
FalconX cited an expected market downturn as the driving factor.
This isn’t the first sign of internal turbulence at the firm. Back in March 2025, FalconX experienced a wave of 10 to 15 senior staff departures, including its European head and global chief compliance officer.
Why FalconX matters to the broader market
FalconX is not a consumer-facing exchange where retail traders buy Bitcoin on their phones. It’s the infrastructure layer that institutional players, think hedge funds, family offices, and large trading firms, rely on for execution, liquidity, and settlement.
The company has facilitated cumulative trading volume exceeding $2.5 trillion. It ranks first in institutional options block volume.
FalconX was co-founded in 2018 by Raghu Yarlagadda and Prabhakar Reddy. The company hit its peak valuation of $8 billion in 2022 following a successful funding round. The firm is headquartered in San Mateo, California.
What this means for investors
The timing is also worth considering. FalconX management made this decision based on their expectation of a downturn, not because one has already arrived in full force.
The March 2025 senior departures followed by this broader workforce reduction suggest FalconX has been managing through structural challenges for over a year now.
The key question going forward is whether FalconX’s remaining 315-odd employees can maintain the service quality and market-making capacity that made the firm a $2.5 trillion-plus volume platform.