The New York-based digital asset brokerage and crypto lender Genesis Global Trading Inc. (www.genesistrading.com) announced that CEO Michael Moro is stepping down. Genesis COO Derar Islim will take over as interim CEO. Furthermore, WSJ reports that the company plans to fire 20% of its workforce. During the 2021 crypto bull run, the company’s loan originations surged more than sevenfold to $131 billion, and the company increased its headcount by 22% to 260. A cut of 20% equates to the loss of about 52 jobs.
The crypto winter so far wiped out schemes whose businesses were tied directly to crypto prices. Hedge fund Three Arrows Capital (3AC) filed for creditor protection, as did brokerage Voyager Digital and crypto lenders Celsius Network and Hodlnaut.
Genesis, a wholly owned subsidiary of crypto conglomerate Digital Currency Group (DCG) founded by Barry Silbert, was hit hard by the 3AC collapse, which put down 50% collateral on its $2.4 billion loan. After liquidating the collateral, Genesis remains the biggest 3AC creditor and filed a $1.2 billion claim against the collapsed crypto hedge fund.
Genesis said it had $4.9 billion in active loans outstanding at the end of June, a 66% drop from $14.6 billion in the first quarter.
