Crypto broker Genesis slashes 20% of workforce and announces CEO exit after loans soured

Crypto broker Genesis slashes 20% of workforce and announces CEO exit after loans soured


Michael Moro, chief executive officer of Genesis, pauses as he speaks during the Bitcoin Conference 2022 in Miami Beach, Florida, April 6, 2022.

Marco Bello | Reuters

Digital asset brokerage Genesis said on Wednesday that CEO Michael Moro is stepping down and the company is slashing 20% of its workforce, the latest casualties as the cryptocurrency market unwinds.

Derar Islim, Genesis’ operating chief, will take over as interim CEO while the company searches for a permanent replacement, the company said in a statement.

Genesis is a unit of Digital Currency Group, the crypto investor and conglomerate founded by Barry Silbert. Genesis was early in the market, launching the first over-the-counter crypto trading desk in 2013, and then expanding to become a major lender.

During the 2021 crypto boom, Genesis boosted its book dramatically. Loan originations surged more than sevenfold to $131 billion, and the company increased headcount by 22% to 170 employees. By mid-2022, that number had swelled to 260. A cut of 20% equates to the loss of about 52 jobs.

The rapid turn in the crypto market this year, which sent bitcoin and ethereum tumbling, wiped out firms whose businesses were tied directly to prices of digital assets. Hedge fund Three Arrows Capital, or 3AC, filed for bankruptcy as did brokerage Voyager Digital and crypto lender Celsius Network.

While Genesis has weathered the storm better than other players in the market, the firm suffered significant losses due its exposure to 3AC. In July, Genesis filed a $1.2 billion claim against 3AC because of breached loans.

“Genesis was not immune to the market drop and the damage to overall sentiment,” the company said in a report on second-quarter market observations. “As we’ve stated publicly, Genesis had loan exposure to Three Arrows Capital. Our parent company DCG assumed the liability related to losses on these loans, leaving our balance sheet healthy so Genesis could continue to be a source of strength for our clients.”

Moro, who joined Genesis in 2015 and took over as CEO the following year, will stay on during the leadership transition, Genesis said. The company said it also recently hired new executives as chief risk officer, chief compliance officer and chief technology officer.

WATCH: Sam-Bankman-Fried’s portfolio, Alameda, losses on Voyager



Source

After Trump pulled NASA nomination, Musk ally Jared Isaacman says stint in politics was ‘thrilling’
Technology

After Trump pulled NASA nomination, Musk ally Jared Isaacman says stint in politics was ‘thrilling’

Inspiration4 mission commander Jared Isaacman, founder and chief executive officer of Shift4 Payments, stands for a portrait in front of the recovered first stage of a Falcon 9 rocket at Space Exploration Technologies Corp. (SpaceX) on February 2, 2021 in Hawthorne, California.  Patrick T. Fallon | Afp | Getty Images Days after his nomination for […]

Read More
Court denies Apple appeal in Epic Games case, keeping App Store changes in place
Technology

Court denies Apple appeal in Epic Games case, keeping App Store changes in place

The App Store logo is seen next to the Epic Games Store logo on two screens. Epic, maker of the popular game “Fortnite,” wants to sell digital items in its apps without giving a cut of the purchase price to Apple. Fabian Summer | picture alliance | Getty Images Apple was dealt a blow in […]

Read More
Amazon’s R&D lab forms new agentic AI group
Technology

Amazon’s R&D lab forms new agentic AI group

Amazon CEO Andy Jassy speaks at a company event in New York on Feb. 26, 2025. Michael Nagle | Bloomberg | Getty Images Amazon has formed a new group within its consumer product-development arm that is focused on agentic artificial intelligence, the company said Wednesday. The team will be based in Lab126, the stealthy Silicon […]

Read More