Crypto brokerage company Genesis has slashed 20% of its workforce as its CEO Michael Moro steps down from his role at the firm, Bloomberg reported Wednesday.
The broker believes the decision will help save operating costs as the firm currently has money problems due to massive exposure to now-bankrupt crypto hedge fund Three Arrows Capital (3AC).
In July, Genesis filed a $1.2 billion claim against 3AC as a top creditor although the broker’s parent company, Digital Currency Group (DCG), has assumed Genesis’ liabilities in the case.
Genesis CEO Steps Down
As part of the new development, the firm’s chief operating officer, Derar Islim, will replace Moro as interim CEO until a permanent replacement arrives. The now-former CEO will advise the firm during the period of finding a suitable replacement.
“Since we launched the first OTC Bitcoin trading desk in 2013, sophisticated investors have come to Genesis to provide liquidity, lending, and custody services for their digital assets. It has been an honor to lead Genesis for nearly a decade and I look forward to supporting the company’s next phase of growth,” Moro said.
New hires were also revealed in the report. Tom Conheeney, former president of SAC Capital and Point72 Asset Management, will join Genesis as a board member and senior adviser. Furthermore, the company brought in new employees to its risk, compliance, and technology departments.
“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,” Islim said.
Crypto Firms Slash Workforce Amid Bear Market
Genesis has now joined a long list of crypto firms reducing their workforce due to the recent bear market in order to survive. In June, crypto lending exchange BlockFi, reduced its workforce by 20% to meet up financial demands amidst extreme market conditions. The same month, the American crypto exchange Coinbase also laid off 18%, representing about 1,100 of its workforce to manage efficiency.
Robinhood, CryptoCom, Gemini, and Rain Financial are other top crypto firms to have downsized their workforce to cope with the market condition.
