Paradigm, the crypto derivatives trading platform, cut salaries company-wide by 15 percent.
The OTC firm — not to be confused with the crypto investment firm with the same name — blamed the pay reduction on contagion stemming from the collapse of crypto exchange FTX in a tweet.
Paradigm also claimed that salary cuts "reduce the need for layoffs seen across the ecosystem" and will impact the organization's momentum less.
"These are tough times but we must do the hard thing and retain the financial flexibility to navigate the turbulent times we find ourselves in as an industry," it added.
Layoffs have hit the wider industry hard in recent months. In December, Fintech firm Plaid laid off roughly 260 employees. The month prior, crypto exchange Kraken reduced its headcount by 1,100, or 30 percent of its workforce.
Paradigm raised $35 million in Dec. 2021 in a round co-led by Alameda Research, the trading firm at the heart of the collapse of Sam Bankman-Fried's crypto empire.
Disclaimer: Beginning in 2021, Michael McCaffrey, the former CEO and majority owner of The Block, took a series of loans from founder and former FTX and Alameda CEO Sam Bankman-Fried. McCaffrey resigned from the company in December 2022 after failing to disclose those transactions.
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