Genesis Global Trading said in August that it planned to lay off 20% of its then 260-person workforce, with CEO Michael Moro moving into an advisory role. The crypto lending platform has allegedly cut 30% of its workforce in the second round of layouts in the last six months.
Based on a January 5, 2023, Wall Street Journal report, Genesis reduced its staff by 30% after it suffered losses from loans to Alameda Research and Three Arrows Capital. An update to its clients on January 4 stated that the company planned to minimize costs as part of its business plans.
A spokesperson said:
“As we continue to navigate unprecedented industry challenges, Genesis has made the difficult decision to reduce our headcount globally. These measures are part of our ongoing efforts to move our business forward.”
Genesis said in August that it planned to lay off 20% of its then 260-person workforce aiming to cut costs. CEO Michael Moro also stated that he would step down from leadership and move into an advisory role.Buy Bitcoin Now
The crypto lending company stopped withdrawals and suspended all new loan originations in November, citing “unprecedented market turmoil” at the time. Three Arrows Capital went bankrupt amid the persistent bear market in 2022, while Alameda Research was part of FTX Group’s Chapter 11 filing in November – Genesis has made claims of billions of dollars in loans from the two companies.
Voyager Digital was another company reporting financial challenges amid exposure to Three Arrows in 2022, with the firm declaring bankruptcy in July. Binance.US announced its plans to acquire the lending company’s assets for over $1 billion after the collapse of FTX US and its offer.
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