Protego Trust Bank, a cryptocurrency custody firm awaiting final approval to become a nationally chartered trust bank, has laid off more than half of its workforce in early March 2023 due to financial difficulties. The company, which operates in the crypto and financial services industry, was unable to secure fresh funding amid the ongoing crypto bear market, forcing it to terminate most employees. While dozens remain involved and operations are ready to launch, capital constraints have stalled progress. Protego, which raised $70 million in a 2021 Series A round from investors like Coinbase Ventures and FTX, is a mid-sized firm with its charter application pending beyond the 18-month deadline, highlighting the challenges in the regulated crypto banking sector.
