Markets

Luno faces a talent exodus while another executive jumps ship

Luno bids farewell to one of its other flagship lights. This news represents the latest in a string of turbulent stock market exits.

Luno, a cryptocurrency exchange owned by Digital Currency Group, is grappling with yet another high-profile departure following a wave of layoffs. Vijay Aiyar, who joined the company in its early days and served as vice president of corporate development and international affairs, is leaving after seven years. Not all details of this move are public, but they are taking place in the context of mass dismissals and financial struggles.

Luno losses

Ayyar joined Luno in May 2016 after several high-profile engagements in technology and financial companies, according to his LinkedIn page. His previous employers include the venture capital firm Antler, Google, and PricewaterhouseCoopers. As CEO of Luno in Singapore, he built global partnerships, developed the Asia Pacific team, and spearheaded Luno’s expansion into dozens of markets.

But Luno didn’t stay in expansion mode. Ayyar’s departure comes shortly after the company announced its withdrawal from Singapore, where he still resides. Although, Ayat denies that his exit is related to the move, according to a CNBC report on May 2.

A spokesperson for Luno confirmed to CNBC that Ayyar is leaving to pursue a new opportunity in the industry. It is still not known where Ayyar will work next.

In January, Luno announced extensive restructuring efforts. As a result of the market turmoil in 2022, the exchange revealed that it will lay off 336 employees. These represent 35% of Luno’s workforce across multiple jurisdictions.

The company also lost its co-founder and chief technology officer, Timothy Stranks, last December. So is CEO Marcus Swanepoel Mars.

Time will tell how Ayyar’s departure will affect Luno, especially as the exchange faces constant challenges in the crypto market. No one has been more forthright about this than Swanepoel himself.

In January, then-CEO Swanepoel told CNBC: “2022 was a very difficult year for the broader tech industry, particularly the cryptocurrency market. Luno, unfortunately, was not immune from this disruption, which affected our overall growth and revenue numbers.”

DCG struggled in 2022

DCG, the parent company of Luno, Genesis and CoinDesk, was one of the hardest hit victims in 2022. The company disclosed a loss of $1.1 billion for fiscal year 2022. DCG held cash and cash equivalents of $262 million as of December 31, 2022 .

DCG has been hit hard by the cryptocurrency market crash and the collapse of Three Arrows Capital’s crypto hedge fund, which defaulted on a loan to Genesis, then the company’s lending platform.

But DCG’s troubles don’t end there. DCG runs the risk of defaulting on a $630 million loan it owes to Genesis that it will theoretically pay back this month.

Disclaimer

Adhering to the Trust Project’s guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult with a professional before making any decisions based on this content.

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