FTX Liquidations: A Wake-Up Call for Crypto Risk
If you’ve been in crypto recruitment for any length of time, you’ll know the FTX liquidations have caused a seismic shift in the industry. What once seemed like a niche skill set is now a critical, must-have resource. So, what’s going on here, and why are risk analysts so hot right now? Let’s break it down.
The Aftermath of FTX: A New Era for Risk Management
Before FTX went under, risk management was important—just not top of mind for most. But once it was revealed how deep the issues ran at FTX, suddenly everyone wanted a piece of the risk management pie. The liquidations, the lawsuits, the scramble to understand what went wrong—all of it put a spotlight on a crucial gap in the market.
I’ll never forget the conversations I had with crypto companies after FTX’s demise. A lot of them had never really thought about risk analysis as anything more than a regulatory checkbox. That changed overnight. Companies began to realise that the stakes weren’t just high—they were life or death for their operations. And guess what? The need for talent surged.
Today, it’s no longer a luxury to have a strong risk management team; it’s a necessity. FTX’s collapse was a wake-up call, and as we’ve seen, it’s led to an explosion in demand for skilled risk analysts. In fact, many companies are now looking for people who not only understand the complexities of crypto markets but can predict and mitigate the potential for catastrophic events like FTX’s.
Real-World Impact: The Role of a Risk Analyst
The role of a risk analyst has evolved significantly since the FTX liquidations. It’s not just about identifying risk anymore—it’s about understanding the potential fallout and how to prevent it. Risk analysts today need a broad skill set, from financial modelling to understanding blockchain mechanics and the broader economic environment.
Take a look at how different companies are adapting. Some exchanges are ramping up their risk management teams, hiring analysts with experience in traditional finance and the crypto space. These are the people who can spot trends before they become full-blown crises. Others are seeking talent from the gaming industry, where complex financial systems and virtual assets already play a big role.
From my experience, it’s those hybrid roles that are most in demand right now. We’ve seen a real shift towards professionals who can straddle both worlds—traditional finance and crypto. The companies that are getting it right are those who understand that risk is a multifaceted beast that can’t just be “managed”—it has to be predicted, anticipated, and navigated with agility.
What Works in Crypto Risk Recruitment
So, what’s been working in the recruitment world since the FTX liquidations? First and foremost, I’ve seen a strong demand for candidates who are not only highly skilled in risk management but also have experience navigating the regulatory minefield. In a post-FTX world, understanding the intersection of crypto law, finance, and regulation is becoming just as important as understanding the market itself.
But let’s be real here—it’s not all smooth sailing. Crypto recruitment is never easy, and even after FTX’s wake-up call, companies still struggle with finding the right fit. I’ve seen too many cases where firms want to hire risk analysts but don’t have the in-house expertise to assess candidates properly. You can’t just look at a resume and say, “This person has the right qualifications.” You need to dig deeper, understand their thought process, and see how they’ve handled real-world challenges.
One thing that’s definitely worked in my experience is leveraging both traditional finance channels and crypto-specific platforms to source talent. The right candidate might not always be on LinkedIn, but they’re out there. The trick is knowing where to look and, more importantly, knowing how to attract them. Companies need to be willing to pay for top-tier talent if they’re serious about avoiding another FTX-level disaster.
The Changing Landscape: A Future Focused on Risk
Looking ahead, it’s clear the landscape is changing. Crypto is maturing, and with that, the need for robust risk management frameworks will only intensify. Companies will continue to seek out risk analysts, but the expectations are growing. This is no longer about filling a position—it’s about finding someone who can shape the future of risk management in crypto.
If you’re a risk analyst looking to break into the crypto space, now is the time. There’s a huge opportunity to play a key role in shaping how companies approach risk. But, just as importantly, if you’re a recruiter in the crypto space, you need to be thinking long-term. The need for risk professionals isn’t going away any time soon.
For those companies still struggling to get their heads around the demand for these roles, here’s my advice: don’t just hire someone to fill a gap. Hire someone who can think strategically, who understands the nuances of risk in crypto, and who can adapt quickly. Because the next crisis may be just around the corner, and the last thing you want is to be caught off guard again.
The Future of Crypto Risk
In the wake of FTX liquidations, we’ve seen a massive shift in the demand for risk analysts. The old ways of doing business in crypto—focusing solely on growth and innovation—are being replaced by a more cautious, calculated approach. Risk management is no longer a side thought; it’s front and centre.
If you’re a company in crypto, or a recruiter trying to navigate this ever-evolving space, remember this: the need for skilled risk analysts is only going to increase. This isn’t a short-term trend—it’s a long-term shift in how crypto businesses will operate going forward. So, if you’re looking to stay ahead, make sure risk is part of your DNA. It’s the only way to truly survive and thrive in the post-FTX world.
