Crypto startup fires all employees after losing everything in FTX

A Cryptocurrency startup DeFi left all of its funds in FTX and lost everything. The consequences of the event are already being felt by the staff, who have lost their jobs.

Nestcoin, headquartered in Nigeria, was yet another possible global victim of FTX. In 2021, the startup raised capital from Alameda Research, a company also led by Sam Bankman-Fried (SBF).

After raising money for their operation, they deposited their stablecoins with FTX, also an SBF broker.

African cryptocurrency startup fires employees after losing everything in FTX

One of the countries with the highest adoption of cryptocurrencies in the African continent is Nigeria. Now that the population was increasingly looking for new means of payment, the idea of ​​the startup Nestcoin was born.

Supported by the FTX group in 2021, the company sought to provide more services to Nigerians. DeFi, Web3, NFTs and other market niches were presented to clients by the company.

A year later, however, the collaboration that looked promising collapsed drastically.

FTX went bankrupt, as did Alameda Research and countless other group companies around the world. With the collapse, the lack of withdrawals was imposed on the exchange’s clients, including Nestcoin.

Now all the employees of the Nigerian cryptocurrency startup are being fired as the funds tied up in the FTX could be lost forever. Since the bankruptcy, the brokerage has made it clear that it no longer has any money.

Despite laying off employees, the startup did not keep customer cryptocurrencies, i.e. no one will lose money at the end.

Check out the letter in English sent to Nestcoin investors below.

Cryptocurrency startup Nestcoin laid off employees after FTX collapse
Cryptocurrency startup Nestcoin laid off employees after FTX collapse. Reproduction.

FTX meltdown has arrived in Australia

FTX also had a division in Australia in recent months. With this operation, Digital Surge was one of the cryptocurrency brokers to resort to its services.

Since the collapse of the SBF exchange, the Australian has told its clients that it has not lent its clients’ cryptocurrencies. Despite this, withdrawals are being blocked by the brokerage, who claim to be unable to meet customer withdrawals due to the end of FTX.

“Hello, I confirm that we are not lending any of our users assets. We understand that this is a very volatile and scary time with the current situation in the crypto space. If you have any questions, feel free to contact us on Live Chat live.”

Whether in Nigeria or Australia, it seems that the global impact of FTX is not over. While the situation is vexing for customers with funds on the platforms, the narrative is gaining momentum that cryptocurrencies should be kept safe in users’ wallets.

Source: Live Coins