FalconX cuts 10% of staff as crypto downturn drags on

FalconX, one of the more prominent names in institutional crypto prime brokerage, is cutting 10% of its global workforce. The reason, per the company, is a prolonged downturn in cryptocurrency markets. For a firm that once commanded an $8 billion valuation, that’s a long way from the peak. The layoffs land at an awkward moment. Just weeks before the announcement, FalconX was making acquisitions and securing fresh regulatory approvals. The firm acquired blockchain infrastructure company bloXroute on July 15, 2026, and received MiCA authorization from European regulators on July 6, 2026. What FalconX actually does Founded in 2018 by Raghu Yarlagadda and Prabhakar Reddy, FalconX was built to solve a specific problem: liquidity in digital asset markets was fragmented across dozens of exchanges and venues, making it expensive and inefficient for institutional players to execute large trades. The firm positioned itself as a prime brokerage for that institutional crowd, offering liquidity, financing, and custody under one roof. FalconX raised a $50 million round in 2023 at approximately a $700 million valuation, a significant step down from the $8 billion peak. The company’s estimated hea...