One of the top crypto exchanges in the world, Kraken has flatly denied rumors that it was in the process of terminating the contracts of hundreds of staff members from an office in Halifax, Canada amidst talk of a security breach.
Rumors of the supposed closure came via social media and caused widespread panic and alarm within the crypto community.
The first sign of the rumor came on Reddit, where a poster claimed that Kraken had “just laid off hundreds of people in response to a security [breach].”
Concerns regarding a security breach
Understandably, this news quickly spread among members of the community, with hundreds of comments being posted in response within a few hours, and concern regarding the rumored security breach started to rise.
A user called “MysteriousPlankton” who is believed to be one of the affected employees claimed that Kraken management had been asking staff to resign on a voluntary basis in exchange for an eight-week “severance package,” with those who didn’t accept those terms running the risk of being laid off.
The user also posted the following –
“Security Everywhere, required to hand in door fobs. Sitting in the lunchroom, get told that due to volumes being down (both trading and support ticket), and in light of the opening of a new office in Asia, we need to reduce costs, and layoff of recently hired (<3 months approx 57 people) was not enough.”
A separate post claimed that the layoff was “massive” and affected almost every section of the workforce, including the deposit/withdrawal team, KYC/AML compliance section, and security and investigations.
“Everything is fine and secure”
Following the rumors gaining speed Kraken was quick to deny that there had been any security breach, and although admitting that it had laid off some staff in the Canada offices, they denied it was due to a shutdown of operations.
The company went to great pains to confirm that there had been no security breach –
“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 and secure.”
Company co-founder and CEO Jesse Powell also address the rumors via his Twitter account, claiming that there hadn’t been a security breach or a shutdown, and mentioning that there had been a reduction in client service personnel at the Halifax office by around 10 percent as part of a cost-saving procedure.
Powell also claims that the layoffs in the Halifax office have no bearing on their staff in other locations, pointing out that the company is actually hiring globally.
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