Reports indicate that CoinDesk, a prominent cryptocurrency news publication, is planning to lay off editorial staff members in anticipation of selling a stake in the company to investors. CEO Kevin Worth reportedly sent an internal email mentioning that layoffs would primarily affect roles within the media team Some sources estimate that the reduction in headcount could be around 16% or 45%, translating to approximately 20 employees losing their jobs.
The internal email indicates that a meeting addressing the situation is scheduled for August 14 at 4:00 pm ET. CoinDesk's response to requests for further information was pending at the time of reporting. Speculation about CoinDesk's sale has been circulating throughout the year. In July , the Wall Street Journal reported that cryptocurrency investors Matthew Roszak of Tally Capital and Peter Vessenes of Capital6 were leading a $125 million stake in the publication. Currently, CoinDesk is fully owned by Digital Currency Group (DCG), headed by Barry Silbert, which also owns Grayscale Investments, Genesis, Foundry, and Luno.
DCG has faced challenges within the cryptocurrency landscape. Genesis, one of its entities, experienced financial difficulties after the bankruptcy of Three Arrows Capital, which allegedly owed DCG $1.1 billion. In addition, DCG faced legal actions, including a lawsuit from the Gemini exchange related to the Genesis Earn scheme. The SEC also filed an unregistered securities sale lawsuit against Genesis and Gemini in January. DCG has also come under scrutiny from the New York State Department of Financial Services and New York State Attorney General Letitia James.
