Crypto Broker Genesis Cuts 20% Workforce, CEO Michael Moro Stepping Down

Genesis, a major institutional digital asset market and a full-service digital currency prime brokerage based in New York, on Wednesday announced several leadership changes amid the company’s efforts to boost the next phase of its growth.

Genesis announced that its CEO had been fired Michael Moro has resigned, and the firm plans to cut 20% of its workforce of 260 people. A loss of 52 jobs is expected from the 20% reduction.

Genesis had reported large losses in June due to collapse of Three Arrows Capital (3AC). The downsizing process comes after Genesis has been reporting significant losses for several months.

Derar Islim will be the interim Chief Operating Officer of Genesis while the firm searches to hire a permanent replacement.

According to the company, Moro, who joined Genesis as a 2015 employee and was appointed CEO the next year, will continue to lead the transition.

Genesis also announced that it has hired chief risk officer, chief compliance officers, and chief tech officer executives to improve its governance and position the company for future success.

Digital Currency Group is the parent company of Genesis, which is a subsidiary that invests in, builds, and purchases blockchain firms around the world.

Genesis began its crypto trading desk in 2013 and started its lending business. Bitcoin The average trade was just $80. New York-based company is one of the most prominent trading platforms in crypto market.

Genesis enabled significantly higher transactions during the boom years of crypto markets. The company’s loan originations soared more than sevenfold to $131 billion, and the firm increased its workforce by 22% to 170 employees. By mid this year, the company’s headcount rose to 260.

Companies whose businesses were directly tied to crypto assets’ values were devastated by the sudden crash of the crypto market in 2018. Firms, including Hedge fund Three Arrows Capital (3AC), Voyager Digital, and Celsius Networks, among others, filed for bankruptcy after facing financial challenges triggered by volatile market conditions.

Although Genesis escaped the storm better than the other market participants, 3AC exposed the company to huge losses.

Genesis filed a claim for $1.2 billion against Three Arrows Capital, now insolvent, in July because of breaches to its loans.

Source: Shutterstock

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