Former employees of FTX and other failed crypto firms will likely face more scrutiny during their job search. But recruiters and hiring managers say they can continue if they are transparent about their previous work.
“The first step is to own it, really,” said Will Brown, managing director of financial services search at recruiting firm Hamlyn Williams.
Career advice comes after a tumultuous year in the crypto industry, including some bankruptcy, that has decimated the value of digital assets and dimmed the once lucrative sector. Although not all failed companies are related to allegation of fraud like FTX, anyone who has worked at these businesses may have a hard time finding their next job.
Will Brown, executive director of financial services search at recruiting firm Hamlyn Williams.
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Tess Nellis
One factor in their favor: The US job market still tight and the demand for the kind of talent the crypto industry seeks is still tallincluding professionals handling compliance and legal business operations at companies.
However, former crypto employees may face some of the same obstacles that former Enron Corp. and Lehman Brothers Holdings Inc. exploding in impressive fashion.
Many of the 4,000 people laid off in December 2001 as a result of the accounting scandal and Enron’s ensuing bankruptcy described their job search as slow, painful and frustrating. Many were said to be unemployed even three months after being laid off, according to media reports at the time, but many also found work soon after through the old-fashioned network and from The online community is comprised of Enron alumni, while some set up their own businesses.
“I have worked with a lot of compliance officers from Lehman Brothers…Is it career-ending for some? Correct. But not for the compliant,” said Andrew Hastings, head of US regulatory hiring at New York-based executive search firm Larson Maddox.
Cryptocurrency compliance, which has grown rapidly in recent years, remains a job skill in high demand and it requires candidates to take more risks in their career path, because they often move from more mainstream financial businesses with a clearer regulatory path to an industry that still lacks federal regulation, employers say.
FTX filed for bankruptcy in November after being hit by a series of withdrawal requests that left it with an $8 billion shortfall, The Wall Street Journal reported. Many FTX employees said they don’t know On the company’s financials and the company’s legal and compliance officers laid off during the week, former chief executive Sam Bankman-Fried revealed the severity of FTX’s financial problems. . The magazine reported that the company had about 300 employees.
Johnny C. Taylor Jr., president and chief executive officer of the Human Resource Management Association.
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Amanda Andrade-Rhoades for The Wall Street Journal
Johnny C. Taylor Jr., chief executive officer of the Human Resource Management Association, said applicants may be confronted with perception by hiring managers that their job is at FTX or at a similarly tarnished businesses will make them an “inherent fraudster”. Association of HR Professionals. He said potential employers will look for any signs of lying or lack of ethics.
“You are always stronger when you attack,” Mr. Taylor said. “It’s the elephant in the room, and you need to do whatever you can to diffuse that you’re cheating.”
According to Larson Maddox’s Hastings, recruiters suggest candidates start reaching out to their networks and talking to recruiters to build relationships. “You want to revise your resume and brush off the cobwebs,” he says.
They also suggest that now is the best time for former FTX employees to reach out to a network of former colleagues who can talk about successes at other companies. “The people you have worked with can prove to you that you can be supportive and can make a difference,” said Mr. Brown.
Mr. Taylor said background checks can be important, and recommended that applicants have six references ready. During the interview, these candidates will also need to tactfully describe their experience at the struggling company without offending their former employers — even if, as at FTX, the former executive The company’s executives are under federal prosecution, he said.
Recruiters and hiring managers say candidates also need to practice separating themselves and their work experience and achievements from the company they’ve worked for. One way to do so is to highlight the positive aspects of their work elsewhere, especially those in businesses with strong reputations.
Ultimately, recruiters and hiring managers agree that candidates need to demonstrate to potential employers that they are ethical people and will be able to point out possible misconduct. happening in the future employer.
“Companies want to build a culture of compliance, they want people who can fight wrongdoing or corruption to be part of the company,” Mr. Hastings said.
Write to Mengqi Sun at [email protected]
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