Kraken, a U.S.-based crypto exchange, has denied that it was shutting down its operations at its Halifax office, amid rumors that the company was firing employees due to a security breach.
The trading platform clarified on Twitter that there has been no security breach and that everything is “fine & secure”. However, the exchange did not address the alleged layoffs.
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.
Thank you for your reaching out to us with your question!
— Kraken Support (@krakensupport) September 5, 2018
In a Reddit thread, a user claimed that the exchange was shuttering its operations in Halifax, Canada and had laid off “hundreds” of people on account of a security issue.
Kraken allegedly firing employees at Halifax to cut costs
Reddit user “MysteriousPlankton” said that the employees were informed that if they resigned by Friday at noon, they would be given eight weeks pay as a severance package. The user appeared to be a Kraken employee.
The user added that if they did not accept the offer in time, the exchange would not be able to guarantee their continued employment.
The user also said that the layoffs were being done to cut costs due to low trading volumes on the platform and the opening of a new office in Asia.
In response to a Reddit user’s question regarding what jobs were being affected, MysteriousPlankton said that the layoffs mostly covered the back-office operations. The layoffs also cover know-your-customer/anti-money laundering processes, deposit/withdrawal processing, VIP support, security and investigations.
The same user encouraged crypto investors to move their assets to other crypto exchanges, such as Canada’s Coinsquare or Binance, which is among the world’s top trading platforms for digital assets.
Currently, Kraken is the 11th largest crypto exchange in the world in terms of daily trading volumes, data from CoinMarketCap showed. At the time of writing, the exchange witnessed daily trading volumes of $262.9 million.
Image via Shutterstock
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