FalconX Cuts 10% Workforce and Shifts Singapore Strategy to Derivatives

FalconX trims about 10% of staff as crypto slump bites FalconX has cut roughly 10% of its global workforce as the digital-asset prime broker braces for an extended market downturn, Bloomberg reported Monday, citing people familiar with the matter. Before the reductions, the firm employed about 350 people — meaning roughly 35 roles were likely impacted — across the United States, the United Kingdom, Singapore and Hong Kong. The company has not publicly specified which teams or offices were affected, nor disclosed expected cost savings, severance costs or a timeline for completing the restructuring. FalconX declined to provide further comment in the report. A prime broker for institutional crypto investors, FalconX provides trading, financing and risk-management services to hedge funds, asset managers and professional trading firms rather than retail customers. The cuts come as falling cryptocurrency prices have weighed on trading volumes and industry revenue, prompting firms to tighten costs and reallocate resources toward steadier income streams. Shift in Singapore strategy FalconX is also narrowing its strategy in Singapore. The firm plans to focus on crypto derivatives trading there and has withdrawn its license application with the Monetary Authority of Singapore. That move does not signal a full exit from Asia — FalconX intends to maintain a regional presence while expanding its European operations. FalconX entered Singapore in 2023 with an over-the-counter derivatives business for institutional clients across the Asia-Pacific region and had planned to seek broader prime-brokerage licenses. The new approach concentrates resources on business lines the company views as better positioned during a downturn. The firm has not explained how the Singapore changes will affect current local employees or customers. Market backdrop and strategic pivots The timeline for FalconX’s changes comes amid a broader industry recalibration. Bitcoin traded near $63,500 on Tuesday after an intraday low around $62,200, roughly 50% below its October 2025 peak above $126,000. Declining spot-market activity has pushed many crypto firms to focus on derivatives, institutional services and tokenized financial products for more predictable revenue. FalconX bolstered its institutional offering in November 2025 by acquiring 21Shares, combining its prime-brokerage infrastructure with the ETP issuer’s global business. 21Shares manages more than $12 billion across over 50 crypto exchange-traded products, including U.S.-listed funds. FalconX has not said whether the recent layoffs will affect those products or their investors. Part of a wider wave of cuts The FalconX reduction follows a string of layoffs across the crypto industry as firms prepare for protracted weak market conditions. Recent reductions include Luno’s roughly 20% workforce cut and personnel moves at exchanges and service providers such as Coinbase, Crypto.com, Gemini and BitGo. Smaller projects have also made headlines — Pump.fun reportedly dismissed employees shortly before token allocations vested, costing at least one former worker an allocation that later reached seven figures. Many companies say they are redirecting spending toward automation, derivatives and institutional business to reduce reliance on volatile spot trading. For now, FalconX’s next steps will focus on executing its narrower Singapore plan and building out its European operations, while the market waits for formal confirmation and more details from the company.