Cryptocurrency firm Blockchain.com lays off 25% of employees as 3AC impacts spread

Blockchain co-founder and CEO Peter Smith speaks at the Web Summit tech conference in Lisbon, Portugal on November 6, 2018.

Pedro Fiusa | NurPhoto via Getty Images

Cryptocurrency startup Blockchain.com says it is laying off 25% of its staff, citing tough market conditions.

The cuts mean about 150 positions in the firm.

The company is also closing its Argentine office and abandoning expansion plans in several countries.

Most of the layoffs – about 44% – affected employees in Argentina, 26% – in the US and 16% – in the UK. On Thursday, the company briefed staff on the plans.

Industry site CoinDesk was be the first to report the news, which was later confirmed to CNBC by a Blockchain.com spokesperson.

Blockchain.com is one of many companies that have been embroiled in the aftermath of the collapse of cryptocurrency hedge fund Three Arrows Capital.

3AC filed for bankruptcy protection Earlier this month, he owed hundreds of millions of dollars to crypto firms including Celsius and Voyager Digital. Since then, the co-founders of the company have gone into the shadows. Lawyers representing creditors trying to trace their whereabouts.

Blockchain.com has itself loaned 3AC $270 million in crypto and expects to lose that amount.

On Wednesday, the crypto exchange Coinbase denied having any financial risks Celsius, Voyager or 3AC.

The collapse of the controversial stablecoin Terra in May had a spiraling effect, causing the downfall of crypto companies that were taking risky leveraged bets.

Firms such as Celsius and Voyager blocked user accounts after failure to comply with ransom demands, before subsequently bankruptcy.

Blockchain.com, founded in 2012, is a crypto exchange and wallet platform. The company that won first place. 7 this year List of 50 CNBC Destroyersclaims to be responsible for nearly a third of all bitcoin transactions through its wallet.

The private company was valued at $14 billion in a funding round announced earlier this year. His patrons include Bailey Gifford, American hedge fund manager Kyle Bass, and British tycoon Richard Branson.