The bitcoin price crash and the snowball effect of problems that followed are still leaving their mark. The CEO of Genesis Trading is now stepping down.
Layoff
Michael Moro is to leave Genesis and be succeeded by interim-CEO Derar Islim. A 20% round of redundancies has also been announced. After the bankruptcy of crypto-hedge fund, Three Arrows Capital (3AC), the company suffered significant losses.
The #crypto winter continues to blow an icy breeze into the face of many crypto exchanges and companies. 🥶 https://t.co/jQkrP9xHX5
— CoinMarketCap (@CoinMarketCap) August 19, 2022
The Asian arm of Genesis Trading had lent as much as $2.36 billion to the collapsed company. Collateral was deposited.
Earlier reports already showed that it was an ‘undercollateralised’ debt. It was said to be 20% of the total amount, which comes down to just under $500 million. The collateralised loan was “backed” by 17.4 million GBTC shares, 446,000 ETHE shares, 2.7 million AVAX, and 13.5 million NEAR.
Genesis did not necessarily have to worry. Its parent company is DCG, or the Digital Currency Group. With Grayscale in the portfolio with others, they could do with a dent.
Interim CEO
Now, the company will be headed by Derar Islim and the workforce will be cut with a round of layoffs. As a result, around 20% of all employees will be made redundant.
Islim has worked at Genesis since 2020 and is the current COO. He will succeed Moro until a permanent successor is found.
“The changes and investments we are announcing today reaffirm our commitment to operational excellence as we continue to expand our services to meet the needs of our customers.”
