Kraken dispels reports of ceasing operations in Halifax and security breach

Recently, Kraken, the world’s largest Bitcoin exchange in Euro volume and liquidity was the talk of the cryptocurrency community when it was alleged that the firm had fired hundreds of employees in Halifax, Canada. The firm was also on the radar when rumors abounded that the US-based cryptocurrency platform was shutting down operations in the city of Halifax.

On 9th September, Kraken which currently operates in Canada, The European Union, Japan, and the United States announced that it was true that the platform had fired some of their staff at the Canada-based offices. However, it was not because of the impending shutdown of offices in the area.

Kraken stated:

“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.”

The rumors were spread across several social media platforms and first appeared on Reddit. Jesse Powell, the Co-Founder and CEO in response to the rumors denied all the false claims of a supposed shutdown or the occurrence of a security breach. However, Powell went on to confirm that layoffs did occur as a part of cost-cutting. Powel on Twitter stated:

“Company laid off about 10% of Client Services team in cost-saving measure. Others offered optional & voluntary resignation packages. No security breach, not “hundreds of people”. No other teams affected, still aggressively hiring globally for all functions.”.

According to Kraken, the number of employees who were fired was 57, as opposed to the allegations of ‘several hundred being fired’ in Halifax. Kraken further affirmed that the employees who were fired were given generous severance packages.

A Redditor named Mr_poorman commented:

“This caught me by surprise. How does Kraken have so many employees yet the system is shit? This ain’t go government staffs.”

Another Redditor named Taa_dow said:

 “Lays off or they left for a better deal?”

Speedboxx, another Redditor added:

“Kraken is the worst exchange, I don’t understand why people still do business with them. I remember there was a fiasco last year where their servers weren’t capable of handling the load and it actually resulted in people losing money on the trading platform due to the bugs.”

He further said:

“Orders saying they weren’t going through and actually going through, double spend issues, etc took place. There were some pretty high profile and super pissed users here, I wonder how far along they are with that lawsuit.”

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