Digital asset brokerage firm, Genesis, revealed that its CEO, Michael Moro, is stepping away from the role and the company is laying off nearly 20% of its workforce following severe losses after the collapse of Three Arrows Capital.
The recent crypto market meltdown has pummeled the digital asset industry into dizzying lows. The crisis not only dragged down crypto prices but triggered a broad range of economic collapse. The market slump revealed a yawning divide as employees of crypto companies lost their jobs in mass lay-offs. One of the biggest crypto lenders in the world, Celsius Network, filed for bankruptcy. The crypto carnage forced the largest crypto hedge fund, Three Arrows Capital (3AC), to declare bankruptcy.
CEO Steps Down Amid Executive Shuffling
As per the official blog post, Genesis Trading, named chief operating officer, Derar Islim, as the interim head of the crypto broker and said it had reduced its headcount by 20%. Genesis CEO, Michael Moro, who is stepping down will continue to advise the company while the company searches for a permanent replacement.
In addition, Genesis has also hired key executive leaders including chief risk officer, chief compliance officer and chief technology officer, to further strengthen the company for the future. In a statement, Islim, expressed,
“The changes and investments we’re announcing today affirm our commitment to operational excellence as we continue to expand our services to meet the needs of our clients today and into the future.”
Genesis has also named Tom Conheeney, who was the president of former hedge fund SAC Capital and its successor Point72 Asset Management, as a senior advisor. Along with Islim, Conheeney will join the company’s Board of Directors. Conheeny said,
“I’m thrilled to join the Genesis Board. I also look forward to working with Derar and the team to bolster key areas of Genesis and to expand the firm’s market position with more traditional financial institutions and alternative asset managers looking for investment opportunities in digital assets.”
3AC Triggred Genesis’s Financial Woes
Last month, the New York-based broker, filed a $1.2 billion claim against 3AC because of breached loans. Genesis, a unit of Digital Currency Group (DCG), stated that the company was hit hard by the insolvency of Three Arrows, as Genesis provided 50% of the collateral for 3AC’s $2.4 billion loan. As per a report, Genesis, noted,
“Genesis was not immune to the market drop and the damage to overall sentiment,”