Crypto Exchange Kraken CEO Confirms Laying Off 57 Employees

News | September 7, 2018 By:

Jesse Powell, Chief Executive Officer of crypto exchange Kraken, has confirmed rumors that his company fired 57 employees from its service center in Canada.

On Thursday, a Reddit user claimed that the exchange was shutting down its office in Halifax, Canada after laying off “hundreds of people in response to a security breech.” According to the post, there was giant commotion on the premises, with “private security all over the place escorting people off after making them sign voluntary quit forms.”

Another user, claiming to be a Kraken employee, said that Kraken held a mandatory staff meeting at 10 am, where employees were informed of their termination. “We’re told that if we resign by Friday at noon, we’re given 8 weeks pay as a severance package. If we do not accept in time, they tell us that they cannot guarantee our continued employment.”

The Kraken support team initially denied the rumor on Twitter, saying that: “We can confirm that we are not shutting down any operations in any specific place, and there has been no security breach. Everything is fine & secure.”

In an email to Bloomberg, Powell confirmed that 57 employees had been laid off, but denied that this was due to a security breach. He said the move represents roughly 10 percent of the company’s client services team.

“The cost-saving measure will have zero impact on the quality of our service,” Powell said in the email. “Rumors of a security breach are entirely unfounded. No other teams are affected, and we are still aggressively hiring in all areas. Kraken will have over 1,000 employees by year-end.”