Crypto lender Genesis cuts staff, CEO quits amid management shakeup
Cryptocurrency brokerage firm Genesis has announced that its CEO Michael Moro will step down as he reshuffles its management team, while a layoff of 20% of its 260 employees is widely reported.
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- COO Derar Islim will take over as interim CEO, and Moro will advise the company during the transition, according to a statement from Genesis.
- Genesis has also appointed new senior advisors, as well as heads of risk, compliance, technology, finance and legal departments.
- Genesis did not respond to Forkast’s request for comments on the executive reshuffle.
- Genesis is a wholly owned subsidiary of the Digital Currency Group (DCG) cryptocurrency group, which was hit hard by the insolvency of Three Arrows (3AC) as Genesis provided 50% collateral for the loan of 2, $4 billion from 3AC, the Wall Street Journal reported.
- DCG remains Three Arrows’ largest creditor, and even after the bond was liquidated, the group still has a claim on 3AC of up to $1.2 billion, according to the report cited with a court filing that previously appeared on its liquidation page.
- In June, CoinDesk quoted an unnamed insider as saying that Genesis could lose hundreds of millions of dollars in a crypto market insolvency contagion due to its ties to 3AC and Babel Finance.
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