New York Digital Investment Group (NYDIG), a virtual asset financial service company, reportedly laid off about one-third of all employees last month.

The Wall Street Journal (WSJ) reported on the 13th (local time) through an informed source.

According to the source, NYDIG’s management notified about 110 people of their dismissal on September 22. According to the employees, the company explained that the reason for the layoffs was to reduce costs and focus on promising businesses.

This happened two weeks before the announcement of the resignation of two company executives.

NYDIG announced on the 3rd that CEO Robert Gertman and CEO Yang Zhao resigned. Tejas Shah, former head of finance, and Nate Conrad, head of global payments, have been named as successors.

In a statement released at the time, NYDIG did not specify the reason for the management change and did not mention the issue of layoffs. However, he stressed that he will achieve record sales, with sales rising 130% in the first half of this year.

“The company’s balance sheet is stronger than ever,” said Ross Stevenson, founder of NYDIG. “We are now aggressively investing in markets that lack capital.”

As the virtual asset market plunged this year, virtual asset companies such as Genesis Global Trading, Coinbase Global, and BlockPi carried out layoffs one after another. Virtual asset lenders Celsius Network and Voyager Digital have filed for bankruptcy protection.

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