According to Bloomberg’s report, cryptocurrency Michael Moro, CEO of Genesis, is resigning earlier this summer as the company cuts 20% of its 260-person workforce after major losses linked to the collapse of Three Arrows Capital.
The company made a statement saying, “We reduced our staff by 20% while aligning our organization with our strategic priorities.”
Genesis Loans Bankrupt Cryptocurrency Company Three Arrows Capital
Genesis, which is owned by Digital Currency Group (DCG), filed a $1.2 billion lawsuit against failed crypto hedge fund Three Arrows Capital in July. DCG took over this request and related obligations from Genesis last month.
The New York-based company bitcoin and was one of the few companies affected by the downturn in the crypto market. The collapse of the Terra ecosystem, followed by the demise of crypto lender Celsius Network and the bankruptcy of Three Arrows Capital, led to a string of industry-wide layoffs, bad debts and bankruptcy filings.
Current Chief Operating Officer Derar Islim, who joined Genesis in 2020, is temporarily replacing Moro as the company seeks a permanent alternative. Genesis also appointed Tom Conheeney, former Chairman of SAC Capital and Point72 Asset Management, as a board member and senior advisor.
In his statement, İslim said:
“The changes and investments we announced today confirm our commitment to operational excellence as we continue to expand our services to meet the needs of our customers today and in the future.”
When asked if further cuts would be made, Genesis replied:
*Not investment advice.
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