Crypto winter continues to eat jobs as the blockchain data analysis and security firm Chainalysis is reducing its headcount, citing collapsing demand from the private sector.
According to a Forbes report on Wednesday, February 1st, an inter-company message suggests that the crypto forensic firm is laying off a small portion of its staff, mainly from the sales department, as part of a reorganization plan.
The company has also released a preview of the hack section of its annual Crime Report. The full release of the report is expected to happen in February 2023.
44 Chainalysis Employees to Go Home
The report, citing Maddie Kennedy, director of communications, confirms that Chainalysis has announced to sack 4.8% of its staff as part of its reorganization plans. According to PitchBook, the firm’s workforce comprises 901 men and women. The planned reorganization will reduce its headcount by 44.
Chainalysis officials stated that impacted employees would primarily be from the sales department. Retained employees will take on roles and reporting lines.
The upcoming layoff comes on the back of the recent crypto winter that has diminished Chainalysis’ product demand in the private sector. Other reasons for the reorganization include a refocus on developing new finance-related products and “a bigger emphasis on public clients.”
The crypto winter has already pushed many giants to the corner and is still pressing hard. As reported, January was a dreadful year for employees working in the crypto sector, as 14 crypto firms have laid off more than 3,000 employees in just one month into 2023. Notable names include Coinbase, ConsenSys, Crypto.com, and Gemini.
Chainalysis Releases 2022 Hacks Preview
The blockchain forensic firm released the hack section preview of its 2023 Crypto Crime Report. The released data reveals that DeFi protocols were the biggest victims of crypto hacks in 2022.
It is noteworthy that 2022 has recorded the biggest-ever losses in hacking incidents, with $3.8 billion stolen compared to $3.3 billion in 2021. 82.1% of the hacking attacks drained DeFi platforms, resulting in a total loss of $3.1 billion—up from 73.3% in 2021.
According to Chainalysis:
“Hacking activity ebbed and flowed throughout the year, with huge spikes in March and October, the latter of which became the biggest single month ever for cryptocurrency hacking, as $775.7 million was stolen in 32 separate attacks.”
Cross-chain bridge protocols were responsible for 64% of the amount lost in DeFi hacks. North Korean hacking groups drove much of 2022’s crypto-hacking activity.
Chainalysis have also alerted the community about a pig butchering scam that involves a “con artist creating a fake profile to reach out to victims through social media, text messages, or dating sites.”
