Genesis, a cryptocurrency brokerage, is laying off 20% of its staff as a result of the resignation of CEO Michael Moro and the appointment of Chief Operating Officer Derar Islim as interim CEO while the company searches for a new CEO.
The changes being made “affirm our commitment to operational excellence,” Islim said in a news release. There will be a reduction in the number of employees in order to “align our organization to our strategic ambitions.”
Genesis, a company established in 2013 and based in New York, got caught up in the intricate financial web that developed when Three Arrows (3AC) failed to fulfill margin calls, which in turn contributed to the fund’s bankruptcy. Genesis was the largest creditor in this web.
Multiple sources suggest that 3AC, which is in the process of being liquidated, is the target of a $1.2 billion claim made by Genesis parent company Digital Currency Group (DCG).
“As we have stated previously, Gesgenesis has loan exposure to Three Arrows Capital. In a report on market observations for the second quarter, Genesis stated, “Genesis could continue to be a source of strength for our customers since our parent company DCG absorbed the responsibility associated with losses on these loans, leaving our balance sheet strong.
In accordance with the press release, Moro will offer guidance to the business during the transition as a search is made for his replacement.
Since we established the first OTC Bitcoin trading desk in 2013, sophisticated investors have come to Genesis to provide liquidity, financing, and custody services for their digital assets, according to Moro. It has been an honor to oversee Genesis for nearly 10 years, and I am looking forward to helping the company reach its next level of development.
