Bloomberg News reports that the Chief Executive Officer of Genesis, Michael Moro, is slated to step down, which is a part of the reshuffle in leadership. This move comes after the crypto brokerage firm was subjected to bankrupt hedge fund Three Arrows Capital and amidst a market downturn that is quite large.
The New-York based firm stated that it is removing 20% of its workforce, comprising 260 persons, so that expenses can be curtailed, beginning Wednesday.
Derar Islim, the Chief Operating Officer, will be taking over as the interim Chief Operating Officer while still looking for a replacement that will be permanent, as revealed by Genesis in a statement. However, during the transition, Moro will be guiding the firm.
Why the Changes?
Tom Conheeney, who was earlier the president of Point 72 Asset Management and SAC Capital, will be joining the firm as a senior adviser and a board member, as revealed by the company. The company also announced executives in technology, risk, and compliance.
In a statement by Islim, the changes and the investments that the company is making further affirm its commitment to operational excellence. This will also enable the expansion of their services so that the needs of today’s clients can be addressed.
Bloomberg News reports that Digital Currency Group, a unit of the crypto conglomerate Genesis was the biggest lender that was ensnared when Three Arrows collapsed after the funds did not meet the margin calls. The company’s parent assumed few liabilities and led to filing a $1.2 billion claim against Three Arrows, which is currently under liquidation.
Genesis is one of the biggest and most well-known digital asset lenders. The company said in the past week that second-quarter new loan origination had dropped by 9% compared to a previous period to approximately $40 billion. The market value of crypto had slid 50% in the present year to approximately $1.1 trillion, as per CoinMarketCap.
Bloomberg News reports that Moro, in a statement, said that since the company was the first to introduce the OTC Bitcoin trading desk in 2013, the so-called sophisticated investors are approaching Genesis to provide liquidity, custody, and lending related to their digital assets. He also said that it was an honor to have led Genesis for over a decade, and he looks forward to supporting the next phase of growth of the company.
