Key Points:
CoinDesk trims its editorial team by 20 amidst cost-cutting efforts.
Tracy Wang, one of the people who brought the FTX event to light, was also among these employees.
Blockchain investors lead acquisition talks for CoinDesk at $125 million.
CoinDesk, a prominent cryptocurrency media outlet, has recently undertaken staff layoffs, as reported by Marc Hochstein, the event planner of the encrypted media company.
The cutbacks were confirmed by CoinDesk officials, who echoed Hochsteins sentiments about the journalistic contributions of the affected employees.
Tracy Wang, who won The George Polk Awards in Journalism, and other editors and reporters are among these staff members. Wang is a journalist with great merit for revealing the shadiness of the billion-dollar FTX empire last year.
Hochstein cited the former employees contributions to journalism and called on other companies to recruit them. CoinDesk officials also confirmed the matter by reposting the post.
These developments emerged after sources familiar with the matter indicated that CoinDesks parent company, Digital Currency Group (DCG), intended to introduce strategic investors.
Approximately 45% of its editorial team, equating to 20 individuals, were affected by the layoffs, part of DCGs broader strategy to optimize expenditures and enhance profitability, according to a report by The Block.
An investor consortium led by blockchain investors Matthew Roszak and Peter Vesenes is on the verge of acquiring CoinDesk for approximately $125 million.
CoinDesk, acquired by DCG in 2016, has been courted by several potential investors in recent months, aligning with CEO Kevin Worths announcement earlier this year about exploring full or partial sales to fuel growth.
The impending acquisition could fortify DCG‘s financial position, especially in light of its subsidiary Gemini’s bankruptcy filing. Notably, DCG has been entangled in a legal dispute with Gemini, its largest creditor, concerning a restructuring agreement for Genesis.